Yosano looks abroad for recovery

Kyodo News

Conditions abroad, not at home, will determine how the economy fares, Finance Minister Kaoru Yosano said Tuesday.

“Downside risks are not much caused by domestic factors,” Yosano said. “After all, the Japanese economy’s recovery is based on an overseas recovery.”

Measures aimed at stabilizing financial systems have been taken outside Japan, but there remains room for improvement, he said.

The real economies of the United States and Europe are not yet strong enough, Yosano said, noting this has led to rising unemployment rates in Japan.

There is little the government can do about conditions overseas, he added, calling efforts to improve the job environment the most important challenge for the government and ruling bloc to handle in the months ahead.

Asked about the Bank of Japan’s emergency measures to address the global economic crisis, Yosano expressed hope that the central bank will continue to buy corporate bonds and commercial paper.

Yosano said the market environment for corporate bonds and commercial paper, or short-term corporate debt, has already improved.