Skip to comments.Will economic empathy shared by Narendra Modi and Shinzo Abe enable Japan to play key role in India
Posted on 06/01/2014 12:18:03 PM PDT by RoosterRedux
Actual Title: Will economic empathy shared by Narendra Modi and Shinzo Abe enable Japan to play key role in India's growth?
It is the hottest cross-border bromance India has seen in a long time. Newly elected prime minister Narendra Modi and his Japanese counterpart Shinzo Abe have been buddies for close to a decade now. In power or out of it, they have looked out for each other.
Sidestepping protocol, they have met on visits to each other's country. And unlike the muted ways of the diplomatic world, the Modi-Abe chemistry has played out in full public view.
In 2007, when Abe visited India as Jap...
(Excerpt) Read more at economictimes.indiatimes.com ...
Comments at source are very enlightening.
What can Narendra Modi learn from Shinzo Abe about bringing growth and prosperity to his country?
Japan’s economy has not risen much out of its perennial doldrums during Shinzo Abe’s year-and-a-half premiership. However, during this year’s first quarter, Japan’s GDP exploded by 5.9%. Which sounds wonderful, except that the rise was attributed to the Japanese government’s decision to raise the country’s sales tax, effective AFTER the first quarter, in April — which led Japanese consumers to go on massive buying sprees during the first quarter to avoid the higher tax.
Now economists predict a negative GDP for Japan during the second quarter, as depleted consumers stay home and retail sales decline. And with its permanently increased national sales tax, will Japan’s retail sales ever return to their pre-tax-increase levels?
If Narendra Modi ever gets desperate for a quarterly rise in GDP, he’ll now know what to do for the short term at the expense of India’s longer-term economy, thanks to his friend Shinzo Abe. Let’s hope, for India’s sake, that Mr. Modi finds some better friends.
Hilarious, hasn’t Abe been horrible on economics?