Monday, December 09, 2013

Eyes Not On Prize

The zing in this morning's cup of tea:
Japan third-quarter GDP revised down to +0.3 percent quarter/quarter

Japan's economy expanded 0.3 percent in July-September from the previous quarter, government data showed on Monday, revised down from a preliminary 0.5 percent increase.

The downward revision underscores the fragile state of Japan's economic recovery, now enjoying a temporary boost from pent-up demand ahead of an increase in the sales tax next April...

So dear Prime Minister Abe, it seems while you and your fellow legislators were expending all your energies promoting explosive growth in the number of the country's secrets and stiffening the penalties for revealing any of them, your signature economic program, the one with your name on it, has been underperforming. If after all that has been done to devalue the yen, buck up the construction sector and deliver better days for shareholders, larded atop a foundation of front-loaded consumer and corporate spending in advance of a looming consumption tax increase, the country ends up with 1.1% annualized growth in GDP, then you have a wee bit of a problem.

Unless, of course, you insist that the hiccup on the road to high growth not your fault...

Later - The New York Times is not thrilled at the quality of whatever growth is going on. (Link)

Later still - From Bloomberg, a way too hopeful headline on what are promises of progress on what has become the most important Abe so-far-undeliverable, bar none: a rise in median wages. (Link)

1 comment:

Philippe said...

…hiccup on the road to high growth [is] not your fault…

Of course it is not his fault! Blame it on all those people who, instead of going shopping as good nation-venerating consumers do, went on and on protesting against the nice secrecy bill… Bloody beautiful-country undermining Terrorists…! Uncle Ishiba, him of the blog post, has it right.


The stock market appears unfazed and continues its exuberant bubble behaviour, though. As for wage rises, wake me up when (non-export oriented) small and medium sized businesses are able to do so.