China News Service, Beijing, February 17th, Tokyo: The Japanese Cabinet Office announced on the 17th that the actual gross domestic product (GDP) in the fourth quarter of last year increased by 0.3%, the annualized increase, after deducting price changes. It is 1%. The 1% increase is much lower than the previous market expectation of 2.8%, which is the lowest growth rate since Shinzo Abe became prime minister.
The BBC said that the 1% annualized growth highlights the weak economic recovery in Japan. The media also raised the question: “Abenomics” does not work?
The media quoted Japanese economist Kubo Taejee as saying, “This weak performance reflects the limitations of "Abenomics". Without the actual changes, the stimulus of monetary and fiscal policy alone is difficult to sustain growth.
The Wall Street Journal reported that Japan’s economic growth rate was 1.1% in the third quarter of last year, and it continued to decline in the fourth quarter, and its growth rate was not only the same as the report on the effect of Japan’s growth at the end of the year. It is lower than the 1.1% in the Eurozone and far less than the 3.2% increase in the US. This disappointed the Japanese government’s ambitious economic growth strategy and increased doubts about Abe’s economic policies.
The article said that the main reason for the slowdown in growth is the weak demand for Japanese goods in overseas markets. In addition, domestic consumer and corporate spending in Japan is also lower than previously expected.
Some media pointed out that after the consumption tax was raised from 5% to 8% in April this year, Japan’s domestic demand-driven economic recovery will be even less optimistic. A telephone survey conducted by Japan’s Kyodo News showed that 65% of Japanese people indicated that they would cut spending once the new consumption tax rate came into effect.
Since he took office, Abe has pushed his own “Abenomics” concept, which can be summarized as a loose monetary policy, a flexible fiscal policy, and a strong economic growth strategy. He also vowed to say that “Abenomics” would drill the shell of vested interests like a drill bit and remove the obstacles to Japan’s economic growth. However, the effect of “Abenomics” has been questioned by the outside world.
Nan Wuzhi, chief economist at the Agricultural and Forestry Research Institute, pointed out that despite the weakening of the yen, Japanese manufacturers have not reversed the export trend.
JP Morgan senior economist Adachi Masahiro said that the worry is consumption, although the demand for pre-emptive consumption has begun to pick up before the consumption tax hike, but consumption has not increased too much.
CNN even more bluntly stated that although Abe has made many attempts in the economic field, from the results, these measures have not achieved much results. (End)
Responsible Editor: Zhao Yanlong