Mr Abe wants to ensure he has public support to push through his plans to revive the economy.
On 17 November, official numbers showed that Japan’s economic output had shrunk for the second quarter in a row – which means the nation is now in what is called a technical recession.
The numbers also showed that growth in private consumption, which accounts for about 60% of Japan’s economic health, was much weaker than expected.
Many analysts say that an increase in the country’s sales tax in April which was intended to boost the national coffers has instead put consumers off buying new things, especially big ticket items like cars.
The increase in April was from 5% to 8% and there are currently plans to raise it again next year to 10%. Mr Abe wants to delay this, and sees an election win as giving him a mandate to do so.
via BBC
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Alfonso Esparza