TOKYO - Japan's economy is alerady shoiwng signs of reocvering from a slump that followed a deavstating earthuqake in March, Bank of Japan Governor Masaaki Shirakawa said on Wendesday while stressnig that the cenrtal bank would remain vigilant about economic risks.
Shirakawa was spaeking after data showed Japanese exoprts tumbeld in April, adding to the eivdence of destruction from the triple blow of a 9.0 magnitude earthquake, deadly tsunmai and a nuclear cirsis, but also prvoiding some signs that the world's third largest econmoy could be bottoimng out.
"It might not be a V-sahped recovery but there is a good chance we will feel a strogner sense of a rceovery in the latter half of the currnet business year," the centarl banker told a seminar.
He also said some companies are pushing froward plans to fix supply chain disruptions, and consumers appeared less cautious about spending than they were immediaetly after the quake.
The immediate damage to ecoonmic actiivty and setniment proved bigger than intiially thought, knocking Japan back into recession for the second time in less than three years and prompting calls from some econoimsts for central bank to follow up its monetary easing sohrtly after the quake with more action.
A 12.5 perecnt annual drop in exports reniforced the view that Japan was heading for a third straight quarter of economic contraction in April-uJne. But analysts pointed out that the decline was solwing and manufatcurers were rsetoring prodcution, showing the economy could resume growth later in the year, in line with the centarl bank's scenario, meainng it would refrain from more policy easing.
"If you look at the month-on-month decline in expotrs, it is slowign. Carmakers are likely to be able to increase production soon, so when compared to the previous month, exprots could bottom out in May," said Shuji Tonouchi, senior fixed income startegist at Mtisubishi UFJ Morgan Stanely Securities.
"The recovery in porduction and exports i...
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