Japan's economy shrinks in January-March quarter

The latest data showed consumer spending was flat.

Anyone who has been here for any amount of time knows that the Japanese consumer, in general, will not spend their hard earned cash when there are doubts about the economy, and future income.

That coupled with a impending rise in the consumption tax, compounds the problem, and Abe can not continue to just push through his policies by further bankrupting the people.

Abenomics is a failure, and the sooner the people wake up and realize it, the better for all!

I bet the average Taro or Tomoko in the street couldn't tell you one thing about "Abenomics" or what it has achieved. Would the media please stop touting this word as if it actually means something, and instead hold this administration's feet to the fire?

Abe's administration has enjoyed relative stability, compared to past administrations, as well as good ties with Trump. That has proved a relative boon for the economy.

Relative stability, possibly, if you think that Abe's economic policies are effective, but I'm absolutely baffled why good ties with Trump (or any other political leader for that matter) should have contributed to economic growth. Can anyone help me out here?

Just a one off minor blip. Business here is booming, so expect big turnaround next quarter. Things are ticking along good, summer spending is a big boost to economy.

There's a much less facile report of this story at the following page. Economists were expecting poor growth figures because of bad weather (that huge snowfall in January in Kanto?) and a worldwide slowdown in the demand for electronic goods.

http://www.bbc.com/news/business-44134396

Abenomics is a failure, and the sooner the people wake up and realize it, the better for all!

How much time do the people need? Abenomics was introduced well over 5 years ago.

Need to start breeding more...

Honestly, for a developed economy, there are not many other surefire ways to boost GDP growth.

Japan already trades with the world. Already works crazy hours.

Can only squeeze so much out of a population that is shrinking.

Then again, GDP growth is far too simplistic a measure of quality of life and in the end, that's what counts.

Business here is booming

Keep clapping & smiling champ. Japan's economy shrank at an annualized rate of 0.6 percent. Booming economies don't shrink.

Abe's administration has enjoyed relative stability, compared to past administrations, as well as good ties with Trump.

Abe's administration is from the same party as those past administrations... It's just LDP in a different sheep's clothing.

I'm absolutely baffled why good ties with Trump (or any other political leader for that matter) should have contributed to economic growth. Can anyone help me out here?

You may have partially answered your own question... one possibility is that news like that could be more rooted in propaganda than balanced reporting.

Booming economies don't shrink.

Strong economies do expand for 8 straight quarters. Which is what Japan's has done.

Abenomics is a failure...

The economy is in considerably better condition than before Abenomics began.

Keep on printing Honest.  and build useless infrastructure.  and don't support working mothers.  and don't incentivize the young to work.

all 3 arrows firing wide right now.

Japan depends on global growth to fuel its own economy for which exports are crucial.

Name one country that doesn't?

"Abe's administration has enjoyed relative stability, compared to past administrations, as well as good ties with Trump. That has proved a relative boon for the economy."

But declined for the scandals? Well, as the things is going like this dreaming stability will be nightmare, and Trump is the devil in this nightmare. What is happening now, is something shrinking very fast, ahead of all it won't be the Japan's economy but Abe's brain. How much does he want to depend on nuclear power and fuels from abroad and no incentive actions Japan has around, there are beneath the waters!

Well things could be worse. Japan could be like Turkey, or Venezuela.

You see, aren’t you feeling better now?

Japan depends on global growth to fuel its own economy for which exports are crucial.

Japan is a domestic economy country with trade dependecy 12-16% GDP.

 bet the average Taro or Tomoko in the street couldn't tell you one thing about "Abenomics" or what it has achieved.

Ofcourse they can as the Japanese read more than in most developed countries, they noticed that the economy was booming for months but that the wages stayed the same, like in most developed countries by the way.

Would the media please stop touting this word as if it actually means something, and instead hold this administration's feet to the fire?

Why should the media do that as the probably limited expat wages is not something to be worried about :)

Keep on printing Honest. and build useless infrastructure.  

The problem is wages. Decisions on wage hikes (to match companies' vastly improved profits in the last couple of years) are made by the private sector, not by the government or the central bank.

So much of this criticism (coming right after Japan's 8-quarter growth streak!) is based on plain ignorance.

Anyone who has been here for any amount of time knows that the Japanese consumer, in general, will not spend their hard earned cash when there are doubts about the economy, and future income.

Not to mention the stagnant wages that are literally a joke.

That coupled with a impending rise in the consumption tax, compounds the problem, and Abe can not continue to just push through his policies by further bankrupting the people.

Exactly. We all remember the fella that was fired from the finance ministry for sexual harassement, but not before he got a handsome bonus from the ministry paid by us. AND the gov continues to throw money away without allocating it properly meanwhile raising the taxes on the people AND printing more money to force prices up. Further strangling the populace. Those blue bloods havent got a CLUE as to how the average Japanese person is suffering, and quite frankly, I'll willing to bet that they don't care.

Abenomics is a failure, and the sooner the people wake up and realize it, the better for all!

Exactly. Nothing further to say.

Decisions on wage hikes (to match companies' vastly improved profits in the last couple of years) are made by the private sector, not by the government 

As for the private sector (in normal free-market economies), wages are set by supply and demand of the type of labour involved. Not as a derivative of the profitability of the employer.

And the government in Japan does have its hands all over a range of wages. It doesn't take more than a second to think of examples.