To get an idea of the magnitude of such correction in the prognosis, simply remember that the IMF had estimated in November 2008 that for 2009 the German economy would suffer a contraction of 0.8%. The supporting of the IMF for such correction in the dynamics of GDP in Germany are: the conservative character of German under the current conditions of uncertainty consumers will amplified the deceleration of exports and is likely to be postponed investment. For more information see Joeb Moore. In addition, Germany must closely follow the evolution of its banking system not discarding the need for new capital injections to avoid crisis situations in the same. Already at the beginning of week I commented about the situation of the Japanese economy problems in Japan are multiplied by placing under threat the yen. The same, being highly dependent on exports, it is suffering from the impact of the crisis with hardness doing that the Government should implement an expansionary fiscal policy to partly mitigate the fall in economic activity, which makes postponing the fiscal target for after 2019. To make matters worse, the evolution of the yen is concerned the Bank of Japan since its appreciation against the dollar deepens the problems. The dollar was trading at the day of Friday below 90 yen.
The continuity of the appreciation of the Japanese currency could force the Bank of Japan to intervene. To Kazuyuki Kato, Manager of Treasury of Mizuho Trust & Banking: the caution over Japanese intervention if the dollar falls below 85 yen, or the foreign exchange market shows sharp movements, will increase. In Japan, the high level of public debt in relation to GDP (which is 150%), the appreciation of the yen, the questioning of the current Government and pressures for early elections, high dependence on foreign trade of the United States.UU. and China, and the fall in investment prospects, appear as an explosive cocktail that suggests that the recession in Japan could be much deeper than so far estimated. This disturbing scene showing the economies leaders from Europe and Japan deepens when we consider the situation in the United States.UU., world leader and about who were the expectations of leading the global economic recovery, and China, the emerging promise that he had made to consider the possibility that its strength could attenuate the American economic downturn.