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Link: Yen's relentless slide revives Japan's interest in structural reforms

Japanese manufacturers with overseas operations now produce roughly 40% of its goods outside the country, according to a survey by the trade ministry. The country now offsets the trade deficit with an increase in surplus in primary income from securities and direct investment overseas, as more firms embark on acquisitions of foreign firms in pursuit of growth abroad. But the bulk of such income earned overseas is reinvested abroad instead of being converted into yen and repatriated home, which may be keeping the currency weak, analysts say. Daisuke Karakama, chief market economist at Mizuho Bank, estimates that only about a third of the ¥35 trillion in primary income surplus last year may have returned home. In cash-flow terms, Japan might have suffered a current account deficit last year as its primary income surplus likely was not enough to offset payments for trade and services, he said. #


Yoooo, this is a quick note on a link that made me go, WTF? Find all past links here.