Japan GDP Unexpectedly Shrinks in Q3
Japanese economy shrank 0.4 percent from Julyto September, after a 1.9 percent contraction in the previous quarter. Rise inpublic demand and net exports were not enough to offset a decline in privatedemand.
Private demand declined 0.9 percentsubtracting 0.7 percentage point from the growth. Private consumption, whichaccounts for about 60 percent of the economy, rose only 0.4 percent, a signthat an increase in Japan'ssales tax to 8 percent from 5 percent in April continued to take a toll.Housing investment decreased 6.1 percent while capital spending dropped 0.2percent. The negative contribution from private inventory was also anothermajor factor in GDP decline.
Public demand increased 0.7 percent and added0.2 percent to the growth. Government consumption and public investment grew0.3 and 2.2 percent respectively. Externaldemand added 0.1 percentage point to the growth as gains in exports (+1.3percent) were higher than in imports (+0.8 percent).
The third quarter gross domestic productfigure translated into an annualised contraction of 1.9 percent. Today's weaker than expected numbers are likely toforce Prime Minister Shinzo Abe to rule out a promised consumption tax rise andcall Lower House elections two years ahead of schedule.
Funny, just in 2 years ago, so many stoogesclaimed that China was goingto crash after this economic tension with Japan.
Haha I remember thatas well. Wheneverthey are selling some big doom and gloom story about China, then usually we do reallywell ourselves.
Like i said, where have they all gone hiding? Once again China'srise is inevitable, those morons thought our factory workers would be out of work, the country will crumble.
Wouldn'tit be hilarious if some of the biggest "China collapse" story peddlerswere false flaggers actually on the Chinese government payroll? Not only wouldthey be making certain Westerners complacent with their constant stream of"Chinaweak!" stories, they'd be ripping them off for tons of money too. file:///C:/Users/ADMINI~1/AppData/Local/Temp/msohtml1/01/clip_image002.gif
Thanks to Abe, our GDP will become at least 5times as large as Japan'sby 2020.
And hopefully their people will still vote forhim.
Gordon Chang is undoubtedly a brilliantbusiness person. He hates Chinabut he also knows that his audience does as well. So he writes what they wantto hear and charges them handsomely for it. Never mind that he's beenconsistently wrong on Chinafor decades. His audience doesn't care about that. They want the "China doom andgloom" to keep coming because it makes them feel less scared about a worldthat's changing around them. This kind of complacency actually benefits Chinaand hastens the demise of the very world that those types of Westerners want tobe told is still thriving.
Perhaps the GDP went down due to unnecessary, war mongering by Japan andthreatening Russia.Not to mention throwing away 30 billion dollars into India again not neededspecially since Japanese economy needed that money locally
Because how else can you explain it, world isdoing well , people are buying cars and buying Sony Playstations and people arewatching Japanese anime and buying bulk load stuff from Japan
Quite shocking considering so many peoplebuying Toyota / Honda and other stuff
Japan really should have stayed neutral memberin world
$30 billion is over a period of 5 years i.e $6 billion every year. and yes $6 billion for next years is going to havesignificant impact on Japanese economy which has $1.2 trillion in forex and$4.7 trilion GDP
Abe is a total fool. Rather than antagonize Chinaat a time where Japan iseconomically and strategically weakening, he should have worked more closelywith China.The island dispute was the last thing Chinaor Japanneeded. The dispute should have stayed on the back burner but no, nationalisticAbe and his cronies had to push the issue (rather than smoothing things outafter Ishihara started the whole mess) and now look at where we are.
China has wrung concessions from Japan about the Islandsbeing in "dispute", established an ADIZ, and sent so many patrolvessels to the island that their presence is more or less accepted. All at atime when Japanis economically vulnerable due to the dismal failure of Abenomics. And thepeople of both China and Japan havenever held such low opinions of one another in recent years. This was alltotally unnecessary.
IMO, the quicker Abe is drummed out of office,the quicker Chinese/Japanese relations can be put on a more positivetrajectory.
As I've mentioned before, the Japanese people are diligent andhardworking. But their government ...sometimes their government spends moneylike a drunken sailor. The peoples money, that is.
Idon't even know why Abe wants to raise taxes yet again. Currently, its not inthe best interest to be raising taxes as this will hurt consumer spending.