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KANSAI ECONOMY PREDICTED TO SEE GROWTH IN 2010 AS CHINA STEADILY GROWS
1/27/2010



Kippo News from Wednesday, January 20, 2009

The gross regional product (GRP) of the Kansai region's seven prefectures, including Fukui, will likely grow 1.6% in fiscal 2010 and 2.3% in fiscal 2011, both in real terms, according to the Kansai Institute for Social and Economic Research. It also predicts that these figures will top the projected nationwide growth rate by 0.2 percentage point in fiscal 2010 and 0.3 point in fiscal 2011.

Recovery in Kansai's employment picture is slow, with its jobless rate exceeding that of the nation as a whole. Because of the region's strong ties with the rest of Asia, however, the forecast envisions that exports to China and other Asian destinations will recover thanks to the firm growth of the Chinese economy. As a result, the effect of such exports on boosting growth is expected to be larger for the Kansai economy than for the rest of the country. With respect to the policies of the ruling Democratic Party of Japan, the institute sees that the effects of the new government's child allowances and other measures will be felt beginning in fiscal 2010. But they will likely be offset by government spending cuts in other areas, thus having little impact on the Kansai economy.

For inquiries, please contact Kansai Institute for Social and Economic Research. (Tel:06-6441-0144)


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