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Japan's economy grows 2.2% in 2Q on revived consumer spending

26 Comments
By YURI KAGEYAMA

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26 Comments
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All well and good until in the future we find out the figures were “accidentally” misrepresented due to a communication breakdown and the double counting and non counting of figures exasperated by a poor communication between ministries and pressure to release good news as wages haven’t risen anywhere near 2%.

2 ( +15 / -13 )

After decades of fighting deflation, or weakening prices and wages, soaring global costs for energy and other commodities are hitting Japanese pocketbooks and balance sheets.

So... the LDP /BOJ struggle to create inflation for decades..was in order to strengthen wages?

So now that inflation has hit...wages will rise.

As has been remarked, the LDP/BOJ goals are totally incongruent with the welfare of the Japanese public.

They do benefit a certain sector of the Japan Inc./LDP combine though.

4 ( +12 / -8 )

So now that inflation has hit...wages will rise.

This has to have been written with a huge dose of sarcasm intended! Wages have been virtually stagnant for at least a generation and businesses and corporations are loathe to increase wages in times of economic uncertainty.

11 ( +16 / -5 )

In bound tourism to Japan is still prohibited unless on an expensive over supervised tour.

As I am in and out of Japan several times a year I can say that I notice students and trainees but not tourists entering Japan.

The one thing that does stand out is the number of Japanese that I now see on planes

7 ( +9 / -2 )

Japan needs to attract more spenders (of course from overseas)

5 ( +8 / -3 )

Of all the BoJ buildings, I like the one in Osaka the best (old+new buildings), it's the least 'euro' feaux Grecian, and I wish for a modern bank building that truly reflects Japanese aesthetic and power. There are some truly outstanding Tadao Ando modern buildings that exudes Japanese sensibility, they need to hire him to design a new BoJ HQ.

1 ( +4 / -3 )

Private consumption jumped at an annual rate of 4.6% but appeared to be constrained by surging prices.

Who wrote this?

Private consumption jumped 4.6% because people still have to buy food IRRESPECTIVE of the surging prices, not CONSTRAINED BY surging prices.

10 ( +13 / -3 )

And more growth is yet to come..

GO JAPAN !!..

-16 ( +0 / -16 )

The inflation rate remains relatively low. The Bank of Japan's most recent estimate for the fiscal year through March 2023 is for 2.3% consumer inflation,

IF as they DO NOT include food and fuel prices! It would be much higher if they included life necessities like FOOD and FUEL. The inflation rate would be far beyond the magic 2%.

3 ( +12 / -9 )

Japan's economy grows 2.2% in 2Q on revived consumer spending

And the Economy grew without foreign tourists. So much for the idea the Japan needs foreign tourists.

-4 ( +3 / -7 )

We'll continue to see improvements in tandem with an easing of the twin global supply shocks caused mainly by China ad Russia.

Further improvement if the govt can force employers to give wage rises in line with corporate earnings growth.

2 ( +3 / -1 )

All well and good until in the future we find out the figures were “accidentally” misrepresented due to a communication breakdown and the double counting and non counting of figures exasperated by a poor communication between ministries and pressure to release good news as wages haven’t risen anywhere near 2%.

And of course, you would have posted the something if the number was negative. Right?

-9 ( +1 / -10 )

Japan needs to attract more spenders (of course from overseas)

Oh dear. Someone forgot to read the article before posting a comment.

-10 ( +0 / -10 )

Private consumption jumped at an annual rate of 4.6% but appeared to be constrained by surging prices.

Who wrote this?

Private consumption jumped 4.6% because people still have to buy food IRRESPECTIVE of the surging prices, not CONSTRAINED BY surging prices.

Oh dear, another poster who knows nothing about economics. Please let me help you. The private consumption does include food etc, but economist strip out food and rent etc to see where the economy going. They also take into account inflation. For example, inflation is also strip out of the number. It is called the real rate.

-13 ( +1 / -14 )

The inflation rate remains relatively low. The Bank of Japan's most recent estimate for the fiscal year through March 2023 is for 2.3% consumer inflation,

Well, that’s not relatively low compared to the target of 2% that the politicians and central bankers were aiming for. It’s above target, and no consumer is happy about the higher prices.

2 ( +3 / -1 )

Yeah right wait the the collapse next quarter…..everything is so much more expensive….

….Here’s a thought, let’s not rely on tourism, it doesn’t make life of the local people better, and doesn’t lead to wage increases. How about increasing incentives to allow legitimate sustainable businesses and attract foreigners with better tax rules to come and live in Japan and actually contribute to the local economy. Tourism in a way is destructive the way of life and surroundings and rather more associated with short term gains. Invest in sustainable local businesses not reliant on incoming tourism will generate a better base and long term wage increase. And whilst we are on this stop wasting tax money on stupid sports event that don’t do anything but to line the pockets of political party affiliates.

5 ( +5 / -0 )

2.2% growth for the income of the rich especially PCR test investors.

-1 ( +1 / -2 )

Present Japan tampers with even official statistics to make government looks good.

Many Japanese are under in poverty

-2 ( +4 / -6 )

Just for perspective growth of any kind is better than nothing which is what happened in 1Q in Japan. People are finally out spending money. They are traveling locally and eating out. Now just imagine if they woke up and allowed more from outside Japan to invest....

0 ( +2 / -2 )

Japan's economy grows 2.2% in 2Q on revived consumer spending

IF this is true, which I strongly doubt, just think how much better japan would do by bringing in overseas tourists. But hey, that's how racist japanese are. They'd rather tank their own economy rather than let in people from other countries.

The mind boggles.

-5 ( +2 / -7 )

Now just imagine if they woke up and allowed more from outside Japan to invest....

I didn't realize they banned outside investing.

If you mean "allow backpackers in", then no, that's not "outside investing." It costs more to host low-spending tourists than what they give back to the economy.

0 ( +2 / -2 )

Japan's economy grows 2.2% in 2Q on revived consumer spending

Sounds like a positive lead for the article.

Then in the middle we see:

* The reading for the last quarter was below forecasts for 2.5% annual growth.*

I wonder why the title didn't mention that the economy grew less than forecasted?

In another article on JT today we see how an increase in an economic sector of China is treated neutrally, or even negatively, with the title noting the increase was weaker than expected. Just some more anti-China bias:

https://japantoday.com/category/business/china's-factory-output-retail-sales-up-in-july-but-weaker-than-expected

1 ( +4 / -3 )

But Japan's economy is still down because Japan is still short on the 40 billion USD that tourism brought in.

-3 ( +2 / -5 )

is dentsu incl?

I mean in that grow...

0 ( +2 / -2 )

Someone is bending the figure’s to fix a rhetoric that Japan is ok. This is also called burying one head in the sand.

If you see busy restaurants, it’s because many others have already closed.

5 ( +6 / -1 )

That means families are venturing out and spending more, even as coronavirus infection rates have soared with the spread of the omicron variant of COVID-19.

Shows how our panic over infection rates, both then and now, was and is totally ridiculous.

0 ( +0 / -0 )

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