Amid fresh signs of economic contraction, Japanese Prime Minister Shinzo Abe on Tuesday called for an early election and put on hold a scheduled sales tax increase.
The news came a day after data showed the world’s third-biggest economy unexpectedly shrank for a second-consecutive quarter in July-September, after the initial sales tax hike clobbered consumer spending.
Abe is hoping the snap election—expected Dec. 14—will give him a fresh mandate for his three-pronged economic revival plan known as “Abenomics” that includes massive government spending, and easy money credit policy and a package of reforms designed to spur growth.
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