CII Communique - December, 2010

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average wages to ¥6.34 million.
Industrial Output Down
Japan’s industrial production in September dropped a
seasonally adjusted 1.9% from the previous month for
the fourth straight month of decline.
Japan, Vietnam Tie-up on Reactors
Japan and Vietnam agreed to work toward the early
signing of a bilateral agreement to build two nuclear
power plants in Vietnam. Vietnam has also agreed to
partner with Japan to mine rare earth minerals.
New $61 Billion Stimulus Package
Japan’s parliament passed a stimulus package worth
about $61billion, designed to kick-start the country’s
fragile economic recovery. The stimulus has been
designed to create jobs, help small businesses and
boost consumer spending.
Japan’s Central Bank Records Huge Loss
The Bank of Japan (BOJ) logged a net loss of 160.4
billion yen (about $1.9 billion) between April and
September, marking its biggest loss in a span of six
months since 1998. It is the second consecutive year
that the BOJ has recorded red ink for the fiscal first
half.
South Korea
Foreign Reserves Rise
South Korea’s foreign reserves as of the end of October
2010 reached $293.35 billion. In October, reserves
rose $3.57 billion from $289.78 billion at the end of
September.
Industrial Output Contracts
South Korea’s industrial output contracted for the
third straight month in October mainly due to reduced
demand for semiconductors and autos. According to
a government report, production in the mining and
manufacturing sectors decreased 4.2% in October from
September, but it gained 13.5% from the year before
on the strength of greater production in machinery
parts.
Exports to top $500 Billion
South Korea’s exports are expected to exceed $500
billion next year for the first time, with its trade volume
likely to breach the $1 trillion mark despite a global
economic slowdown. Outbound shipments of South
Korean products will increase 11.3% in 2011, according
to the report by the state-run Korea Trade-Investment
Promotion Agency (KOTRA).
Straight on-Quarter Growth
The South Korean economy grew 0.7% in the third
quarter from three months earlier on solid exports and
domestic demand, posting its seventh straight quarterly
growth. This growth rate for the July-September
period makes South Korea the only OECD member
to continuously post gains since the first quarter of
2009.
Europe
India-Croatia Investment Seminar, Zagreb,
Croatia
CII participated in an India-Croatia Investment
Seminar organised by the Indian Embassy in Zagreb
and the Croatian Chamber of Economy on
2 November.
The seminar discussed various opportunities that the
two countries offered, and possible partnerships.
Mr Pradeep Singh, Ambassador of India to Croatia,
discussed the trade opportunities and steps being taken
by the two governments to increase bilateral trade and
investment relations.
The Croatian Government was represented by
Ms. Ljiljana Zajc, Head of the Department,
Ministry of Economy, Labour and Entrepreneurship,
and Ms Lidia Mekic, Head of Export Department
in the Ministry of Economy, Labour and
Entrepreneurship.
Presentations on Indian Industry and the economy were
made by Mr. Abhinav Kumar, Director, Marketing, Tata
Consultancy Services, Europe, Tata Group; Mr. Ajit Singh,
Chairman, ACG Worldwide and Dr Gunveena Chadha,
Director and Head CII-UK.
The seminar was well attended and participants
from IT, power, renewable energy, ship building
and construction industry were specifically keen to
do business with India. Tourism was another high
growth area.
The session was moderated by Ms Suncanica Skupnjak-
Kapic, Director, International Relations Department,
Croatian Chambers of Economy. The Chambers are a
partner of CII.
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