We don't know for sure, but at least Japan is showing signs of stabilization. Despite growing deflation and addition contraction at 3.3% this year, the Financial Times today reported some stabilizing signs from the second largest economy in the world giving hope that the worst of the recession may be almost over.
So far, industrial production in March rose at twice the expected pace, climbing 1.6 percent month-on-month. In addition, factory output rose for the first time in six months. The Royal Bank of Scotland in Tokyo also reported: "factory production appears to be getting close to the bottom." That was March, industrial production is expected to continue rising further this month, as well as May due to manufacturers trying to make up for their previous inventory reductions.
Japan predicted stabilization sheds lights and a glimpse of hope for the Asia Pacific region; even though, recovery is probably still far from the horizon. Toyota is expecting its "worst slump in memory" (for almost six decades) and Normura recently revealed a record of $7.2bn net loss. Earlier this week, the Japanese government announced additional issuance of $175 in bonds as tax revenue shortfalls is becoming inescapable this coming fiscal year. However, it remains unclear if the central bank will strike for any further recovering measures. It is keeping overnight lending rate at 0.1 per cent at the moment.
We can't expect good news on global recovery just yet, but stabilization is a real good sign regardless.