News: Japan Falls into Recession

Maiko

Quote:

The Japanese economy slipped into recession in the third quarter, a surprisingly poor performance that could delay a planned sales tax hike and trigger new elections.
Gross domestic product shrank by an annualized 1.6% in the three months ended September, Japan's Cabinet Office said Monday. The result was much worse than the 2.2% expansion expected by economists.
On a quarterly basis, Japan's GDP declined by 0.4% as business investment slipped. Economies are commonly described as being in a technical recession after two straight quarterly contractions.
The disappointing result comes as Japan faces a full slate of questions over tax policy and the country's plan for economic revival -- dubbed "Abenomics."
Japan's consumption tax was increased to 8% in April in a bid to improve the country's fiscal position, and the government is now agonizing over whether it should implement an additional bump to 10%. The first increase set off a boom and bust cycle that wiped out growth in the second quarter, as consumers drastically changed their spending patterns.
Related: Japan's economic revival is in jeopardy

http://money.cnn.com/2014/11/16/news/economy/japan-gdp/

Rama

Welcome to the club.

NewRihannaStan

Oh wow. Well I have something to discuss in economic's class today

Jicky

Oh well, still probably the most technologically advanced country in the whole world.

Cz!

Japan has peaked.

Hugamari

Oh no, not the world's biggest music market

Cherry

They better make room in their budgets for Gaga, Avril, Mariah, Carly, and Ariana - the queens of Japan

Sra.Berryman

Quote:

Originally posted by Cherry

They better make room in their budgets for Gaga, Avril, Mariah, Carly, and Ariana - the queens of Japan

They've been in recession since 1993.

The difference this year is that it was predicted the country would grow a 1,6%... And, of course, it didn't happen.

Luis Garicano, the best economist in the world, is always right.