Japan's GDP marks sharpest drop since 2011

[JSCh]

Japan's GDP marks sharpest drop since 2011
Aug. 13, 2014 - Updated 02:33 UTC

Japan's economy shrank sharply in the April-June quarter. It contracted the most since the March 2011 earthquake due to a drop in consumption.

The Cabinet Office released preliminary gross domestic product data for the second quarter on Wednesday.

GDP fell an annualized 6.8 percent in real terms. That's the most since the 6.9 percent drop during January-March 2011.

On a quarterly basis, it contracted 1.7 percent. That's the first decline in 2 quarters.

Consumer spending dropped 5 percent. Demand for automobiles and home appliances fell sharply after the consumption tax was raised from 5 to 8 percent in April.

Corporate investment marked a 2.5 percent drop. Many companies tightened their budgets after upgrading their computer systems. The move came before Microsoft ended its support for the Windows XP operating system in April.

External demand boosted GDP by 1.1 percent as imports fell after the consumption tax increase.

 

[senheiser]

 

[TaiShang]

Japanese government should hurry up to save Taiwan from being absorbed by China sooner than later. Mr. Abe may not find the required funds when he needs to, considering the way his miracle economy goes. LOL.

China should not help him before he bents on knees and sincerely apologizes for being a bridgehead for US expansion.

 

[SOHEIL]

@Nihonjin1051

 

[Huaren]

Japanese government should hurry up to save Taiwan from being absorbed by China sooner than later. Mr. Abe may not find the required funds when he needs to, considering the way his miracle economy goes. LOL.

China should not help him before he bents on knees and sincerely apologizes for being a bridgehead for US expansion.

Japan will bent knees to the US like usual, if abenomic isnt working they might finally pull through the trade treaty with US & Co. pacific version, although "some" ordinary japanese folks arent gonna like that. Anyway japanese will be willing to do anything and beg anyone, other than admit their mistake to China or Korea that is, it seems this is the one thing japanese couldnt afford to do.

 

[TaiShang]

Japan will bent knees to the US like usual, if abenomic isnt working they might finally pull through the trade treaty with US & Co. pacific version, although "some" ordinary japanese folks arent gonna like that. Anyway japanese will be willing to do anything and beg anyone, other than admit their mistake to China or Korea that is, it seems this is the one thing japanese couldnt afford to do.

A trade pact that the US forces upon Japan would cause widespread antagonism toward the government as such a pact would first target Japan's remaining industrial strongholds such as agribusiness and automobile. Maybe that would prompt them to vote in someone like Hatoyama.

 

[Huaren]

A trade pact that the US forces upon Japan would cause widespread antagonism toward the government as such a pact would first target Japan's remaining industrial strongholds such as agribusiness and automobile. Maybe that would prompt them to vote in someone like Hatoyama.

Well since they have already branded him as traitor I kinda doubt any japanese politicians would dare to show any sign of reconciliation and sincere apology (again), at least not in the near future. Also if that happens the hearts of viets and pinoys might break. (not sure about indians)

 

[senheiser]

abe is a very bad president for japan thats what japan gets for opening up to America instead to china and russia

 

[Beidou2020]

Brilliant news. Anytime our enemies weaken is great news for China. I'm not one of those that goes around celebrating the success of our enemies. US, Japan, India, Vietnam, Philippines are the enemies of China.

Japan is a dead country.
Here is why:

Their economy has been dead for 25 years.
Their economy is still shrinking despite 0% interest rates for 25 years, unlimited money printing and multiple stimulus packages.
They have the highest debt to GDP % in the world and getting worse.
Their big corporations are losing money and going bankrupt due to Chinese and Korean competition.
Their industrial base has been decimated.
Their population is the world's oldest.
Their population is shrinking.
They have no independent foreign policy.
They are a mere colony of the West.
Their technology is becoming outdated.
Their military is full of outdated junk.
Their country is full of nuclear radiation.
They are being overtaken by China in all areas.

Japan is fast becoming irrelevant in the world and the Japanese spirit has been well and truly crushed.
The Japanese regime sees all the things I'm saying which is why the Abe regime is becoming belligerent and militaristic.
Japan is now going rogue as it knows it has nothing to lose.

The spine of Japan has been dismantled which has made it a dead country.

 

[Huaren]

abe is a very bad president for japan thats what japan gets for opening up to America instead to china and russia

To be fair, Abe tried really hard to opening up russia, part of his key strategy against China was to get on the good side of Russia. Then the Ukraine happened, along the way Aba / Japan have realized that the US was their best bet after all, and they must kick Russia to prove themselves to the US, so now instead they are focusing on the south. Simple cost benefit calculation to achieve their goal.

 

[Viet]

Japan is like a rich man, living in a french villa, eating chinese food and having a japanese obedient wife
even if his wealth does not grow as fast as in the past, he is ways richer than chinese pal.

 

[HariPrasad]

Japan's GDP marks sharpest drop since 2011
Aug. 13, 2014 - Updated 02:33 UTC

Japan's economy shrank sharply in the April-June quarter. It contracted the most since the March 2011 earthquake due to a drop in consumption.

The Cabinet Office released preliminary gross domestic product data for the second quarter on Wednesday.

GDP fell an annualized 6.8 percent in real terms. That's the most since the 6.9 percent drop during January-March 2011.

On a quarterly basis, it contracted 1.7 percent. That's the first decline in 2 quarters.

Consumer spending dropped 5 percent. Demand for automobiles and home appliances fell sharply after the consumption tax was raised from 5 to 8 percent in April.

Corporate investment marked a 2.5 percent drop. Many companies tightened their budgets after upgrading their computer systems. The move came before Microsoft ended its support for the Windows XP operating system in April.

External demand boosted GDP by 1.1 percent as imports fell after the consumption tax increase.

I would say this a correction. This trend og negative growth is unlikely to continue for a long period of time. Japan is a country of very high GDP (COmpare to its size) So very high GDP growth is unlikely but it would come back to moderate GDP growth rate.

 

[Beidou2020]

Japan is like a rich man, living in a french villa, eating chinese food and having a japanese obedient wife
even if his wealth does not grow as fast as in the past, he is ways richer than chinese pal.

China has a bigger GDP than Japan.
China has greater financial wealth than Japan.
China has larger consumer market than Japan.
China has larger military budget than Japan.
China has much stronger military than Japan.

China has much greater comprehensive national strength than Japan.

 

[Raphael]

Japan is like a rich man, living in a french villa, eating chinese food and having a japanese obedient wife
even if his wealth does not grow as fast as in the past, he is ways richer than chinese pal.

I know you don't care for "communist theory", because your white master told you it was bad. But communist economic theory about the "means of production" is still very relevant here. Marx stressed that those who control the "means of production" hold real power - just having the "fruits of production" is not enough. Right now, Japan is merely living on the "fruits of production" - that is the wealth they've accumulated over the past decades. But their ability to produce is steadily eroding, and their economy is being kicked to the curb by more nimble and more ambitious new Asian economies. It's not a sustainable situation for them because it's just like living on inheritance money.

 

[INDIC]

Japan will still remain the technological R and D hub of Asia, nobody else is even close to them.