Challenges facing next Japan PM
Canada Goose Jackets TOKYO (Reuters) Whoever becomes Japan next prime minister faces a raft of challenges ranging from huge public debt and a surging yen, a nuclear power crisis and reconstruction of the tsunami devastated northeast, to winning support from the opposition canada goose in uk canada goose outlet a split parliament and managing a fractious ruling party.
canada goose deals The ruling Democratic Party chooses its new leader, who will be the country sixth prime minister in five years, in a leadership race on Monday.
canada goose store ECONOMY Japan economy was tipped back into recession by the magnitude 9.0 earthquake and deadly tsunami on March 11 that devastated northeast coastal areas Canada Goose online and left more than 20,000 people dead or missing. The canada goose uk shop disaster triggered the worst nuclear crisis since Chernobyl in 1986.
buy canada goose jacket cheap Policymakers and private sector economists expect the world third largest economy to return to moderate growth by the autumn as companies restore supply chains and manufacturers bring production back to pre quake levels.
But slackening global demand Canada Goose Coats On Sale and a surging yen threaten the export reliant economy recovery, while a delay in reconstruction spending adds to a murky outlook.
Tokyo plans to spend 13 trillion yen ($170 billion) to rebuild canada goose black friday sale disaster hit areas on top of 6 trillion yen already earmarked for immediate relief measures in two extra budgets for the fiscal year to next March.
canada goose coats But it is unclear when the third supplementary budget Canada Goose sale will be implemented to kick start full fledged reconstruction, as the political impasse has delayed rebuilding efforts.
SURGING YEN Japan is struggling to limit damage to its export reliant economy from rises in the yen, which hit a record high of 75.94 yen to a weakening dollar on August 19, two weeks after Tokyo intervened to stem its ascent near the previous record high of 76.25 set in March.
canada goose black friday sale As Japan economy is seen recovering while Europe canada goose clearance sale and the United States https://www.canadagooseoutletstore.co.uk face slowdowns, Tokyo is having a hard time convincing G7 counterparts of the need cheap Canada Goose for intervention after rare joint action taken buy canada goose jacket in March.
To help ease the pain of a surging yen, the government stands ready to intervene again while seeking steps through the third extra budget and counting on support from the Bank of Japan with an ultra easy monetary policy to maximize the effects of intervention.
Canada Goose online Tokyo set up a $100 billion credit line on August 24 to help boost Japanese investment overseas and cheap canada goose uk enhanced monitoring of currency positions at major financial institutions, but analysts doubt if Canada Goose Jackets the steps will be effective to stem the yen rise.
canada goose clearance sale DEBT BUILDUP Investors will be Canada Goose Outlet watching to see if the next premier sticks to fiscal discipline at a time when a debt crisis in the West has sounded alarm bells for heavily indebted Japan, with public debt already twice the size of its $5 trillion economy.
Moody Investors Service cut its rating on Japan government debt by one notch to Aa3 on August 24, blaming a buildup of debt since the 2009 global recession and a revolving door leadership that has hampered effective economic strategies.
canadian goose jacket To canada goose coats help fix tattered public finances and fund bulging social security costs, which are increasing by more than 1 trillion yen every year, the government has vowed to double the 5 percent consumption tax by the middle of the decade.
But the target is far from enough for Tokyo to meet the canada goose store aim of balancing its budget. Lawmakers are wary that tax hikes such as those seen needed canada goose uk to repay the huge cost of rebuilding would alienate voters, making fiscal reform elusive.
cheap Canada Goose NUCLEAR CRISIS The March disaster triggered meltdowns and radiation leaks at Tokyo canada goose factory sale Electric Power Co Fukushima Daiichi nuclear power plant, shattering public confidence in nuclear power.
Canada Goose Outlet The nuclear crisis has clouded the outlook for the restart of reactors shut for maintenance, meaning it is possible that all of buy canada goose jacket cheap Japan 54 reactors could be shut by May 2012, raising the threat of prolonged power blackouts which could disrupt economic activity further.
Outgoing prime minister Naoto Kan had vowed to canada goose coats on sale gradually wean Japan from dependence on nuclear power, reversing Tokyo previous stance of boosting nuclear capacity to meet half canada goose uk black friday of Japan energy demand by 2030.
Canada Goose sale But he did not spell out how he thought Japan could raise capacity from other energy sources canada goose uk outlet to replace nuclear power.
canada goose DIVIDED PARLIAMENT Kan departure may pave the way for the ruling bloc to improve relations with the opposition, which controls parliament upper house and can block bills.
Canada Goose Parka Several candidates including former foreign minister Seiji Maehara and Finance Canada Goose Parka Minister Yoshihiko Noda have called for a coalition between main ruling and opposition parties to break the policy deadlock.
buy canada goose jacket But some ruling party lawmakers are cautious, and for uk canada goose now both the main opposition Liberal Democratic Party and its former coalition partner New Komeito appear cool to the idea. Marine Corps Air Station off the southern island of Okinawa.
The dispute over Futenma distracted the two sides and threatened to undermine the alliance as they face China rising clout and brinkmanship by a nuclear armed North Korea.
canada goose clearance Japan agreed with Washington last year to stick to a 2006 deal to move the Futenma base to a less populous area of Okinawa, but Tokyo has yet canadian goose jacket to win support for the canada goose clearance plan from local residents.
Japan saw ties with Beijing deteriorate last year after a territorial dispute flared up over islets in the East China Sea, and China military buildup including the acquisition of an aircraft carriers is unnerving Japan and other Asian neighbors.
But Japan wants to keep relations with China on an even keel given the two countries growing economic ties. China has been Japan biggest trading partner since 2009 and overtook Canada Goose Online Japan to become the world No.2 economy last year.