Japan degrades its economic diagnosis, but still … Abe – dh.be

Japan degrades its economic diagnosis, but still … Abe – dh.be

The Japanese government has pointed to “weaknesses” in the economic recovery, which is adversely affected by an increase in the consumption tax, even if the Prime Minister is confident about the success of his “Abenomics” .

In an article published the same day by the Wall Street Journal, Abe defends its policy stimulus, criticism against the slowdown in the archipelago.

“We have already seen progress in employment and wages. Make no mistake, Japan will emerge from the economic downturn, “he says, a few days of a trip to New York to attend the Meeting General of the United Nations.

The gross domestic product (GDP) fell by 1.8% between April and June compared to the previous quarter. This is the largest decline since the row to the triple disaster (earthquake, tsunami, nuclear accident) occurred in March 2011.

Household consumption, “also affected by bad weather, seemed pausing recently “,” business investment showed signs of weakness, “industrial production and also” exports stagnate, “summed up the government in its monthly report, revising downward its diagnosis for the first time since April.

If a recovery hoped “short-term”, he remains vigilant, not excluding the entry into force in early April of a “Japanese tax” to 8% (against 5% previously) not sustainably weighs on activity.

In response to changing market conditions, the head of government will decide by year’s end for or against a further increase in this unpopular tax . indirect (10%), originally scheduled for October 2015

“Some argue that structural reforms in Japan – what I call the” third arrow “of Abenomics alongside the first two monetary arrows and fiscal – are off and wages are not keeping pace with prices. But there is no cause for alarm, “insists Mr. Abe in the Daily American.” Growth strategy implementation is bearing fruit. “

And remember, then that it begins a “second chapter” to the head of a new team, the reforms already undertaken or on track: decline in corporate tax (to eventually 20 to 29% against 35% today ), liberalization of the electricity market, promotion of agriculture …

Prime Minister also welcomed the steps taken to fight against the aging population and declining birth rate , highlighting efforts to encourage the employment of women.

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