Production and Technology of Iron and Steel in Japan during 2001.pdfVIP

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Production and Technology of Iron and Steel in Japan during 2001.pdf

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Production and Technology of Iron and Steel in Japan during 2001

1. The Economic Circumstance of the Japanese Iron and Steel Industry The outlook for year 2001 was projected to be extremely severe, but in reality, the recession surpassed everyone’s ex- pectation, and the economy seemed to have entered a defla- tion spiral, and the actual economic growth rate fell into negative. In Japan, because of the government’s attempt at processing bad debts to push forward structural reform, movement toward reduction or termination of public works, collapse of bubble for the information technology (IT) re- lated business which encouraged public sector facilities in- vestment in 2000, and undermining of electric and automo- bile industries due to shift of production mainly to China, the circumstance has fallen into long-term stagnation of do- mestic demand, despite collaboration, merging, and restruc- turing efforts of the companies. Due to substantial slow- down of the United States economic growth and safeguard measures regarding Trade Act 201, exports to the United States were poor. The Asian countries which maintained relatively good performance in 2000, particularly the four NIES countries including Korea, Taiwan, Hong Kong, and Singapore were affected by their high dependency on IT re- lated exports, so the slowdown of the economy due to IT re- cession hit hard, and exports from Japan did not increase. Moreover, the terrorist attack against the United States in September resulted in accelerating the worldwide recession. In terms of employment, the unemployment rate was 5.0%, which was higher than 1999 and 2000 when the worst figures were recorded since 1953 when the survey was started, and the rate entered the 5% level for the first time. Seen by month, the unemployment rate was 5.3% in September, 5.4% in October, 5.5% in November, and 5.6% in December, and the worst records were renewed consecu- tively for four months, and it seems that the situation may worsen further. The number of unemployed was 3.4 million workers, which was the w