Tax rise deals blow to Japanese growth
Thursday 14 August 2014
A rise in VAT has delivered the biggest blow to Japan’s economy since the tsunami of March 2011, figures for April to June showed yesterday.
Shoppers in the world’s third-biggest economy had rushed to spend in the first quarter of the year to avoid the sales tax rise, brought in by Shinzo Abe, the Prime Minister, to tackle the nation’s huge debt burden.
As a result Japan’s GDP shrank at an annual pace of 6.8 per cent in the second quarter, falling 1.7 per cent between April and June – only just short of the 6.9 per cent collapse in the first three months of 2011.
But Mr Abe is hoping to shake Japan out of its deflation trap with a money-printing programme to drive down the yen and boost exports.
Takuji Aida, an analyst at Société Générale, said: “We see reasons to be cheerful about growth for the third quarter.”
- 2 Italian police 'reveal' what Jesus looked like as a young boy
- 3 General Election 2015: 14-year-old boy asks Nick Clegg – 'can you kill Katie Hopkins?'
- 4 University student in court for allegedly covering housemates' food in window cleaner and spit
- 5 Ryan Gosling posts tribute to 'Ryan Gosling Won't Eat His Cereal' creator Ryan McHenry
Italian police 'reveal' what Jesus looked like as a young boy
Who should I vote for? The Independent quiz matches best political party for undecided voters ahead of the general election
Mysterious 'X-Files' sounds heard miles above the Earth
Garland shooting: Isis claims attack on Prophet Mohamed cartoon contest in Texas as its first action on US soil
Met Gala 2015: Beyoncé manages to out-skimp Rihanna, Miley and Kim Kardashian combined with near-naked ensemble
In defence of liberal democracy
Over 50,000 families shipped out of London boroughs in the past three years due to welfare cuts and soaring rents
EU asylum policy is 'a direct threat to our civilisation', says Nigel Farage
The Rothschild Libel: Why has it taken 200 years for an anti-Semitic slur that emerged from the Battle of Waterloo to be dismissed?
General Election 2015: UK will be 'run for the wealthy and powerful' if Tories retain power, Labour warns
General election live: SNP suspends two members for disrupting Labour rally
iJobs Money & Business
£20000 - £25000 per annum + Uncapped commission: SThree: Can you speak German,...
£25000 - £30000 per annum + benefits: Ashdown Group: An exciting opportunity f...
£215 per day: Ashdown Group: Junior Project Manager (website, web application ...
£40-50K: Guru Careers: We are seeking an experienced Software Engineer / Softw...