Is Japan heading for a Greek tragedy?

JAPAN

With the global economy going through another bout of anxiety, much has been made of Japan's rejuvenated start to 2012.

First quarter growth was strong, at 4.1% on an annualised basis. The backdrop for this improved performance included a 5% rise in public investment as reconstruction spending began to take effect. Even the country’s lethargic consumers appeared to loosen their purse strings. Not surprisingly, this has prompted a surge in optimism about Japan’s growth prospects. Of course, the reaction has been accentuated by the pauper state of much of the developed world. The OECD predicts a miserly 1.6% growth for all its members in 2012, while it sees full-year Japan GDP growth of 2%. This is onl...