Monday, December 8, 2014

Japan slips deeper into recession

This is just a news note.

A problem anywhere can lead to a problem everywhere. Japan falls deeper into recession than previously thought per this article.  The first part of the article linked here is pasted below.

 Japan's economic contraction in July-September was deeper than initially expected on declines in capital expenditure, according to revised data on Monday that backs Prime Minister Shinzo Abe's recent decision to delay a second sales tax hike.
The data indicated that the hit from April's sales tax hike turned out to be bigger than expected.
Abe, who has called a snap poll for Sunday, hopes voters will agree that his stimulus policies and a decision to delay a second sales tax hike next year will revive a sputtering economy.
The revision to an annualized 1.9 percent contraction, more than a preliminary 1.6 percent fall, confirmed the world's third-largest economy had slipped into recession with only a modest rebound expected in the current quarter. It compared with a median forecast for a 0.5 percent contraction.
"The data confirmed a two straight quarter of recession so this is a harsh evidence for Abenomics," said Takeshi Minami, chief economist at Norinchukin Research Institute.
"Tame growth in wages in particular are likely to drag on private consumption and the broader economic activity."

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