Shinzo Abe Tells Government Session That Economy is in Positive Cycle

Prime Minister Shinzo Abe told a House of Councillors plenary session on Oct. 2 that Japan’s economy is in a positive cycle.

“A virtuous cycle of the economy is beginning to occur. By steadily implementing our growth strategy, we would like to ensure the positive cycle benefits households and small and medium-sized businesses as well,” Abe said in response to a question by Natsuo Yamaguchi, leader of the junior ruling coalition partner Komeito.

He reiterated that he will decide by the end of this year whether to raise the consumption tax from the current 8 percent to 10 percent in October 2015 as planned, while considering overall economic conditions.

Yamaguchi demanded that the government take steps to minimize the impact of the planned consumption tax hike on the economy, such as the compilation of a supplementary budget. However, Abe did not clearly respond to his question.

Prime Minister Abe defended the government’s plan to allow the Government Pension Investment Fund to expand the scope of financial instruments in which it invests premiums collected from public pension policyholders.

“We’ll carry out the reform in a safe and efficient manner. The review will contribute to the growth of the Japanese economy,” Abe told the session.

via Mainichi

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza