Japan’s economy contracts in Q2, as exports and consumer spending shrink.
Japan’s descent into recession has prompted questions of what the country must do to right itself — and many agree that “Abenomics” will not be enough. Most Japan watchers and economists, and even Abe himself, say that to restore sustainable growth, Japan needs sweeping deregulation and structural reforms. But pushing through such changes is proving daunting, despite Abe’s pledges to “drill deep into the bedrock” of Japan’s vested interests.
MADRID | By Luis Arroyo | When many were speaking of a new Japanese recession and the failure of Shinzo Abe’s bold Keynesian policy, his Liberal Democrat Party obtained a sweeping victory at the polls on Sunday. In Europe, the Abenomics are in austerity fans’ crosshairs because if these policies happen to work they would look ridiculous. They were delighted when Japan’s GDP contracted in 3Q. But I’ve been following the Nippon economy for some time and I don’t really rust quarterly figures.
MADRID | By Luis Arroyo | Nobel laureate economist Robert Shiller discusses the issue of the so-called “animal spirits” and what should be done in order to pump trust. He uses a visit to Japan as a base to show how effective the politics by Mr. Abe were. Japan is the country that has reduced the gap with the potential GDP.
SAO PAOLO | By Marcus Nunes | Shinzo Abe was elected in December 2012 on a promise to revive growth and put an end to deflation. How have his promises ‘performed’ one year after taking power? The ‘performance’ of the so-called Abenomics will be illustrated by a set of charts.