The weakening yen, which has increased the value of exports, has helped Toyota reach its highest profit since 2008.
Toyota agreed for a 2013 salary bonus of 2.05 million yen ($21, 375), an increase from 1.77 million yen last year. In 2008 the Japanese automaker paid 2.51 million yen bonus, according to the Japan Automobile Workers’ Union.
Honda and electronics group Hitachi have also seen similar increases, a clear sign that Japan’s manufacturers have finally managed to recover from the 2011 natural disasters which have disrupted production. One of the main reasons for these increases would be the 17% drop in the yen since October 31st, fueled by the ‘unlimited’ stimulus strategy fueled by Prime Minister Shinzo Abe, which has led to a significant increase in the value of exports.
“We can expect more companies to raise bonuses if the yen weakens further,” said Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management Co. “If this trend keeps going, the Japanese economy as a whole will improve.”
The sluggish economic growth and deflation which have affected the nation over the past 10 years, have led analysts into believing that the undermined consumer confidence and stagnant wage growth will continue this year too. Last year, average monthly pay was 297,800 yen, with 8.2% higher compared with 1992.