Skip to comments.Japan's GDP Shrinks 6.8% As Sales Tax Bites
Posted on 08/26/2014 3:04:29 PM PDT by TigerLikesRooster
Japan's GDP Shrinks 6.8% As Sales Tax Bites
A sales tax rise takes its toll on spending by consumers and businesses but the painful effects are expected to be temporary.
Efforts to shore up Japan's public finances have had a negative impact on its economy, with GDP shrinking 1.7% in the second quarter alone.
A sales tax increase from 5% to 8%, which came into force in April, was blamed for the contraction in output during the period which came in at at annualised rate of 6.8%.
The decline in GDP was the worst since the economic tailspin that followed the March 2011 quake disaster and tsunami in north-eastern Japan but it was largely expected as consumers and businesses had front-loaded spending in the first quarter to beat the tax rise.
The government took a relaxed view of the performance, with economics minister Akira Amari saying: "Looking at monthly data during April-June, sales of electronics goods and those at department stores are picking up after falling sharply in April.
(Excerpt) Read more at news.sky.com ...
More central planning must be needed.
A 60% sales tax increase and they say the painful effects are expected to be only temporary?
Ah, governments and their expectations...
Guess they need their own helicopter Ben'oit to save the day. /s
Someday I’d love to hear what you do when you go silent for 3~4 weeks at a time. Then start posting again like you never left.
Can you add me to all your ping lists? Thanks.
What did they expect? People to spend more money that they don’t have?
Everybody knows government is what makes an economy tick. Look what central planning did for the Soviet Union, Cuba and North Korea!
We recall how “great” the Japanese financial world was supposed to be — remember the “Z-Theory”??
What a joke. Look at their financial history over the past 15 years. And now they increase taxes to improve their economy??
Socialism does not work. Never has. Sheer financial genius.
Behold the results.
Socialism practiced by the supposedly conservative LDP and Abe . Buncha crooks that’s what they are .