Japan cuts growth outlook as exports hit, imports rise

It's alarming that despite Abenomics continued efforts for last 18 months and Massive QE by BOJ there is no end to Japan's Negative Economic Growth.

Was it only four or five days ago tnat Japan Today posted a story that Japan had revised growth figures upwards?

However, the government said growth would bounce back to 1.4% in the following fiscal year as Prime Minister Shinzo Abe’s policy blitz takes hold.

Could swear we've heard that before -- like every time they again lower the current projection.

Reduce the demand for imported fuel which will tilt the balance. In other words get some reactors back on line like it or not that will change the balance.

StormR,

And risk another nuclear meltdown? The costs for Fukushima are well into the trillions. Nuclear power is what Japan cannot afford any longer.

The cost of oil has risen dramatically in Yen terms as Abe has debased the Japanese currency to help exports, or so he thought. The yen has weakened by a third making oil in Yen terms much more expensive than it was before he took power. Abe policies is was is behind the huge increase in import costs.

the government said growth would bounce back to 1.4% in the following fiscal year as Prime Minister Shinzo Abe’s policy blitz takes hold.

What policy blitz? There has been virtually no implementation of any purported "third-arrow" economic reforms, and even the ideas that have been announced have been lacking, sad to say.

Abe needs to get the old A-into-G.

zurcronium your argument is floored because we all know the yen was weaker prior to the disaster so the yen isn't the blame here, its the importation of large amounts of oil etc to run power plants, get the nuclear plants certified as safe to restart and restart them.

How about when the yen was at 110 - 120 back prior to 2008, how weak was that compared to now, your claim doesn't make sense based on that.

If Abe's "policy blitz takes hold", economic growth will likely decline even further. The only thing Abenomics has going for it is an apparent openness to international trade. I'll give Abe that. Japan will only benefit from increased trade, foreign investment, and competition.

Unfortunately, Abenomics' tax policies, and lack of spending cuts, will severely limit whatever gains more trade brings. Quantitative easing (printing money), tax hikes, and deficit spending do not foster growth.