The Group of 20 countries have expressed their intent to jointly support Japan's reconstruction, underscoring the fact that the aftermath of the Great East Japan Earthquake poses a new concern for the global economy.
The prolonged stagnation of the Japanese economy, which took a direct hit from the March 11 earthquake and tsunami, could negatively impact the global economy. Each country shared a sense of crisis and placed high expectations on Japan's early reconstruction.
The two-day meeting of financial ministers and central bank governors from the leading advanced and emerging economies in which Japan, the United States, European countries and China participated, ended Friday in Washington after adopting a joint statement.
Among others things, the joint statement pointed out that a series of accidents at Tokyo Electric Power Co.'s Fukushima No. 1 nuclear power plant together with political unrest in some Middle East and North African countries have increased uncertainty over the global economy and energy prices.
Slowdown unavoidable
The global economy has been growing at a rate of between 4 percent and 5 percent after overcoming the financial crisis. However, a slowdown of the Japanese economy is unavoidable for the time being. The future of the global economy hinges on whether Japan can rebuild its economy through early reconstruction after the March 11 disaster.
Oil prices have recently been surging. It is feared that further dependence on thermal power generation due to events in the Middle East and accidents at the Fukushima No. 1 nuclear power plant may result in an even bigger surge in oil prices.
Concerns of the G-20 nations over the risks that Japan's crisis presents are seen behind their joint statement, which stipulates "solidarity with the Japanese people" and "our readiness to provide any needed cooperation."
In the joint statement, the G-20 countries also reaffirmed their cooperation in preventing disorderly movements of exchange rates. Although the yen jumped immediately after the March 11 earthquake and fell after Japan, the United States and European countries jointly intervened in the market, it remains unstable. Maintaining the yen's stability is vital.
Economy remains resilient
The joint statement stressed the G-20 countries' recognition that the Japanese economy and financial sector are basically "resilient."
Japan needs to meet these expectations of the G-20 countries and clear away uncertainty about the global economy.
The government, first and foremost, should speed up compilation and Diet passage of the first fiscal 2011 supplementary budget, thereby setting a solid course toward post-disaster reconstruction.
It cannot be overlooked that movements are spreading among countries to impose import restrictions on Japanese farm and other products due to the accidents at Fukushima No. 1 nuclear power plant.
The government has properly called on each country to calmly respond to the matter. To prevent harmful rumors, Japan must quickly bring the situation at the Fukushima No. 1 nuclear power plant under control and continue to provide the world with accurate information.
The G-20 countries have made progress by agreeing on "indicative guidelines" with which they monitor each other's economies to correct imbalances of the global economy. We urge the G-20 countries to discuss details on the selection of countries to be monitored and ensure workable implementation of the guidelines.
Source: http://www.yomiuri.co.jp
The prolonged stagnation of the Japanese economy, which took a direct hit from the March 11 earthquake and tsunami, could negatively impact the global economy. Each country shared a sense of crisis and placed high expectations on Japan's early reconstruction.
The two-day meeting of financial ministers and central bank governors from the leading advanced and emerging economies in which Japan, the United States, European countries and China participated, ended Friday in Washington after adopting a joint statement.
Among others things, the joint statement pointed out that a series of accidents at Tokyo Electric Power Co.'s Fukushima No. 1 nuclear power plant together with political unrest in some Middle East and North African countries have increased uncertainty over the global economy and energy prices.
Slowdown unavoidable
The global economy has been growing at a rate of between 4 percent and 5 percent after overcoming the financial crisis. However, a slowdown of the Japanese economy is unavoidable for the time being. The future of the global economy hinges on whether Japan can rebuild its economy through early reconstruction after the March 11 disaster.
Oil prices have recently been surging. It is feared that further dependence on thermal power generation due to events in the Middle East and accidents at the Fukushima No. 1 nuclear power plant may result in an even bigger surge in oil prices.
Concerns of the G-20 nations over the risks that Japan's crisis presents are seen behind their joint statement, which stipulates "solidarity with the Japanese people" and "our readiness to provide any needed cooperation."
In the joint statement, the G-20 countries also reaffirmed their cooperation in preventing disorderly movements of exchange rates. Although the yen jumped immediately after the March 11 earthquake and fell after Japan, the United States and European countries jointly intervened in the market, it remains unstable. Maintaining the yen's stability is vital.
Economy remains resilient
The joint statement stressed the G-20 countries' recognition that the Japanese economy and financial sector are basically "resilient."
Japan needs to meet these expectations of the G-20 countries and clear away uncertainty about the global economy.
The government, first and foremost, should speed up compilation and Diet passage of the first fiscal 2011 supplementary budget, thereby setting a solid course toward post-disaster reconstruction.
It cannot be overlooked that movements are spreading among countries to impose import restrictions on Japanese farm and other products due to the accidents at Fukushima No. 1 nuclear power plant.
The government has properly called on each country to calmly respond to the matter. To prevent harmful rumors, Japan must quickly bring the situation at the Fukushima No. 1 nuclear power plant under control and continue to provide the world with accurate information.
The G-20 countries have made progress by agreeing on "indicative guidelines" with which they monitor each other's economies to correct imbalances of the global economy. We urge the G-20 countries to discuss details on the selection of countries to be monitored and ensure workable implementation of the guidelines.
Source: http://www.yomiuri.co.jp
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