business

Japan household spending drops 11.1% in April

10 Comments
By CHARLY TRIBALLEAU

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© 2020 AFP

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10 Comments
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Faced with this data, the Japanese government solution:Spend generously to subsidize and promote luxury foodstuffs like wagyu and melons, double down on international tourism in a pandemic. Instead of more vigorous trickle up basic income stimulus.

It is the same logic as massive corporate tax cuts combined with regressive increases in sales tax.

12 ( +14 / -2 )

Well it is kinda difficult to spend money when everything is closed, people are not working, Part timers lost their jobs and everyone is told to stay home. What did they expect?

13 ( +13 / -0 )

Well, This is only begining. it will be worst.

5 ( +5 / -0 )

Lack of confidence (including distorted figures) in the government and its measures during a crisis only exacerbated the low spending due to the tax increase. Now that the people can see that the inept government is incapable of supporting even the nation's basic needs in a crisis, whatever cash they have on hand will be saved for the future. Further, Japan has always been one of the leaders in household savings so this situation will not change but will only be reinforced. Kiss the big ticket items good bye, medicine, food and basic living costs will be what most people will be saving for. I also seriously doubt that there will be large capital investments by the corporations since they took such a big hit during the pandemic. Cost reduction will be the name of the game.

3 ( +3 / -0 )

For any countries, household spending will drop for a while if government said "stay home as much as you can", even if the state of emergency is lifted.

6 ( +6 / -0 )

what did abe expect?

especially when people are still waiting for the one off ¥100,000 per person as well...

Many people will save that due to reduced earnings and a cut in their summer bonuses.

Dentsu did well out of it though!!

pays to have friends in high places eh

10 ( +10 / -0 )

"The new coronavirus is having a serious impact on the economy including spending by individuals," chief cabinet secretary Yoshihide Suga told reporters, asked about the government's view on the latest figure.

It's hard to tell how much impact the virus crisis have had on the economy. For without the pandemic the local household economy was already expected to shrink due to the consumption tax hike introduced late last year. Non-tax obligation such as social security payments is also a heavy burden especially to underemployed individuals.

3 ( +3 / -0 )

The government has everything under control and it goes according to their plan. I'm so relieved!

3 ( +3 / -0 )

In the US checques were send in a week, it has been 3 months in Japan. 2 weeks ago, we got the form , no money. 3 1/2 months and counting. A total disfunctional government is the only problem. Abe masks , Abe Sakura party, Abe school scandal, Dentsu scandal, Abe failed stimulus, Abe’s wife non stay at homes compliance, Abe’s prosecutors scandal, but still.. he would be re elected. feel free to complete the list.

8 ( +8 / -0 )

The tax hike already did the damage, now Covid Depression added a little extra.

4 ( +4 / -0 )

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