Industrial production, household consumption, inflation: despite the efforts of the Prime Minister, bad indicators accumulate and the Japanese economy will not restart
.
Article (s) associated (s)
The Japanese government confirmed Saturday a stimulus plan of 3,500 billion yen (€ 24 billion) to boost consumption as the regions and help small businesses. “ By rapidly implement these measures, I think we can give a boost to consumption as to regional economies and expand to the whole country a virtuous circle of growth ” justified Shinzo Abe.
I must say that contrary winds blow over the Japanese archipelago. On one hand, Abe was reelected up the Prime Minister hand by Parliament but on the other, its economic policy continues to accumulate cons-performance. Industrial production (-0.6%) has just display its first decline in three months, while household consumption (-2.5% yoy) fall. Already battered at their income, households were particularly reluctant to open their wallets since the increase in VAT from 1 st of April.
Another element of concern relates to inflation slowed again in November and for the fourth consecutive month. The price increase now stands at 2.7% year on year (+ 2.9% in October). Excluding tax, it is only 0.7%, far from the objective of the central bank’s 2%. The archipelago, which initiated a long struggle against deflation, was not known as low inflation since September 2013.
Prices range -they fall into negative territory?
And that’s not the recent plunge in oil prices will push prices up. While in the medium term, this should benefit Japan. Because since the Fukushima disaster and stopping of nuclear power plants, it is forced to increase its imports of hydrocarbons.
The question now is whether prices will fall into negative territory. Should this be the case, the Bank of Japan will then have no choice but to take a measure shock, possibly as early as January “the effects of its previous easing in late October, have completely dissipated “, analysts believe SMBC Nikko Securities. Before opening the valves more, Haruhiko Kuroda, the governor trusts that finally will trigger a virtuous economic circle, under the leadership of “Abenomics” (fiscal, monetary and reforming).
“Sharing the cake”
For this, he urged in recent days during a speech before the Member of the employers, the big companies to “share the cake.” They are largely the beneficiaries of the depreciation of the yen and “must change” attitude and reinvest their profits, he advocated, along with Abe who called last week to push the bosses to play the game by increasing the rewards of their employees, and better paying their subcontractors.
According to the central bank, the Japanese companies, whose mentality is marked by more than fifteen years of deflation, n have never had such good mattresses filled with money at the end of September. All they ask is a favorable business environment to invest and share profits. So far, Shinzo Abe, despite the confidence he has, has not succeeded.
Michel de Grandi
No comments:
Post a Comment