Japan's economy surprise for recession

Prime Minister Shinzo Abe The decision to increase the consumption tax has pushed the Japanese economy into recession in Q3. With this development, Mr. Abe may have postponed plans to raise sales tax for the second time.

Statistics was announced this morning (17/11) showed that Japan's real GDP fell 1.6% in the quarter 3/2014 in the context of family spending limit and the company reduced capital base version.The Japanese economy into recession is an information hardly anyone imagined.Not an expert in any of the 18 economists surveyed by the Wall Street Journal earlier comments received on Japanese GDP decline. On average, these experts forecast the Japanese economy rose 2.25% in the third quarter. Thus, the Q3 is the second consecutive quarter of Japan's economic decline. In the second quarter of this year, Japan's GDP fell by 7.3% due to increased sales tax from 5% to 8% previously, starting from the effective date of 1/4. An economic downturn 2 consecutive quarters is already in a recession. Statistics show that spending by households only country in the 3rd quarter rose 0.4% compared with the same period last year.Meanwhile, the basic expenses of the investment company fell 0.2%, maintaining the trend of "meager" of the previous quarter. However, a positive sign that the Japanese companies began to cut inventories at high levels - factors that produce stagnation in recent times.

Q3 GDP data have important implications Japan by Prime Minister Abe has vowed to use this data as a basis for deciding whether to increase the consumption tax to 10% in May 10/2015 from the current level of 8% as this is not. Some say sources close, with the predicted less positive about the economy of this country, Abe said he might postpone the tax increases and called elections in December to search for the public support for economic growth strategies of him.

About Japanese business leaders currently have different views about the consumption tax increase. Some claim that the tax increase is necessary to show that Japan's commitment to financial stability, while others say this is not the right time to hit the pockets of consumers. "Instead that the Japanese economy paralyzed consumption tax increase again, it is better to wait for about one year until the domestic demand recovery, "said Akira Emi, president of Express Ride On, the operator sequence Japan's largest sushi delivery, said.