Photo: -ratamahatta- via flickr
The currency war has destroyed optimism in Japan, according to a survey by Kyodo News.Nearly 76 per cent of companies surveyed said economic growth was ‘levelling off’ — up from only 27 per cent in August.
75 of 107 companies surveyed named the strong yen as the key factor inhibiting growth.
Options for dealing with a strong yen include cutting costs (said 33 companies), importing raw materials (19 companies) and moving out of Japan (9 companies). All of those, particularly the last, are depressing options for a former export power.
56 companies also predicted the bursting of asset bubbles in India and China in the next couple of years — which would represent further casualties of ‘fighting the Fed’.