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The following is a summary of the article in the Australian today.
Recession a test for Abenomics
Leanor Warnock
Mitsubu OBE
JAPAN'S economy shrank for a second quarter in a row, heightening Prime Minister Shinzo Abe's struggle to salvage his pro-growth platform.
Japan is the world's third-largest economy.
Elections to be called next month and a delay to the raising of the nation's sales tax next year.
Mr Abe hopes that delaying the tax increase, along with the Bank of Japan's move on October 31 to pump billions of dollars of cash into the economy, will keep so called Abenomics humming.
Real gross domestic product fell by 1.6 per cent on an annualised basis in the July-September period, following a 7.3 per cent contraction in the previous quarter.
None of the 18 economists surveyed by the Wall Street Journal had forecast a contraction. The median forecast was for a 2.25 per cent expansion.The Nikkei Stock Average ended down 2.6 per cent on the news.
Sales tax has been raised from 5 per cent to 8 per cent on April 1. Privte housing investment fell an annualised 24 per cent in the July-September quarter.
A quote from Japans Economy Minister
Abenomics is not a failure. What we have to do now is to give consumers confidence that their life will improve going forward.
'"My opinion is a typical quote from a politician " ie " Everything is ok your living well life is good don't worry trust me."
"Sorry for the summary I don't have an online subscription but I did buy the Australian paper this morning"
theAustralian.com.au/wsj
