business

Japan reports economy grew 2.5% year-on-year in July-Sept

26 Comments
By Elaine Kurtenbach

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I really get tired of these fluff pieces on how the Japanese economy is making some kind of miraculous revival. People are hurting here (financially and otherwise), and nothing substantial is being done about it. It's obvious that the keepers want their subjects to remain in slavery.

Trickle down clearly doesn't work.

4 ( +10 / -6 )

Oh YES, love it!!

The "government reported" this, of course.

I mean if there was anything (too) negative, there wouldn't be a report.

As for me, I don't see any growth .... at least not in my wallet.

3 ( +8 / -5 )

Trickle down clearly doesn't work.

‘Trickle down’ is when the government spends our money racking up huge debts, or depreciates the value of our domestic currency, and those who make out like bandits from this in the short term then sprinkle some of our money back to us right?

3 ( +6 / -3 )

People are NOT hurting in Japan. There are numerous jobs available for anyone who is willing to accept the salary. What is the problem? Perhaps the salary is below what they expect to earn. JT reports there is a labor shortage. Imagine what the economy would be if either the welfare system were revised so people had to accept jobs in Japan or immigration of qualified workers were opened. Maybe both. A licensed nurse in California cannot work in Japan even though that person is a Japanese citizen, educated in Japanese junior college, and now has a bachelor's degree in nursing from a California university. Why? The archaic test prohibits it. Just another example of the government not meeting the need for qualified medical personnel for the elderly. Every reader should go to the local mall and count the number of bags people carry as they leave, then say the economy is weak. No way.

3 ( +4 / -1 )

Matt if you read it what's your positive take, it's hard to find a positive.

2 ( +7 / -5 )

Add to that Japan posting a recort current account surplus of 2.18 trillion yen in October. If your condition is not improving, you're doing something wrong. The past decade has been getting better and better for me (Not that I'm boasting or anything. Well, maybe a little.)

Thanks to Abenomics or factors beyond the governments control?

I tend to think that much of it is due to the gradual recover since 2008 and China, certainly in Japans case.

Although rock bottom interest rates, even negative, has to have helped business and consumers in some capacity.

2 ( +4 / -2 )

The revision issued Friday reflects higher than expected business investment 

Abe and other officials have urged companies to use huge cash piles that have accumulated over the past few years to help spur growth through investment

So has their urging finally had some impact?

1 ( +3 / -2 )

‘Trickle down’ is when the government spends our money racking up huge debts, or depreciates the value of our domestic currency, and those who make out like bandits from this in the short term then sprinkle some of our money back to us right?

That pretty much sums it up, yes.

1 ( +5 / -4 )

Great news! I feel generally that the economy is heating up well and am seeing activity not seen for a decade. Of course minimum wagers, part timers, and contractors won't see much even in good times, so it's natural to see resentment and bitterness even when times are good for the rest of us

1 ( +2 / -1 )

It’s when the government creates conditions whereby companies and rich individuals get even richer, in the hope they will spend the extra money in ways that benefit everyone.

But that’s Abenomics.

The weaker yen has inflated exporters profits in yen terms and the BOJ buying stocks has boosted the already-rich.

Good economic policy would work to improve incentives for all economic actors, unlike Abenomics trickle-down which you described.

For most Japanese on minimun wages (read 10's millions)

What are the true numbers?

And how many of those min wage earners are part of a household with a much higher income overall?

Abenomics was suppposed to have boosted incentives for housewives to earn more than the spouse deduction allows for, but in the end reforms fell far short.

1 ( +2 / -1 )

Toyota sold more cars because of the favourable exchange rate doesn't make for an improved economy. No working man is feeling better off, taxes are rising , what you pay for is getting smaller. Its all a sham.

1 ( +4 / -3 )

"year-on-year" only means something if the previous year was a good year...

The key figure here is "Private demand rose 0.3 percent"

But I'm sure Abe will use this to tout his flailing "Abenomics" as a huge success.

I'm still waiting for those wages to rise as he "promised"

1 ( +2 / -1 )

The revision issued Friday reflects higher than expected business investment and rising inventories. In quarterly terms the world's third-largest economy expanded at a 0.6 percent pace, twice the original estimate, the report said.

Private demand rose 0.3 percent from the previous quarter; the earlier estimate had it flat.

not even whole numbers, and these numbers have yet to be checked. Every quarter report of growth gets downgraded consistently after checking. 0.6, 0.3, that's hardly growth. It a hopeful guess. As for any benifits to the population well I'm happy if you are prospering but I look left l look right and nope it's a survival situation.

0 ( +3 / -3 )

Abe and other officials have urged companies to use huge cash piles that have accumulated over the past few years to help spur growth through investment and wage hikes.

Trickle down doesn't. Time to raise taxes and not spend. But gov never met a tax it didn't spend, so good luck with that

0 ( +2 / -2 )

noiryosan73 - not entirely sure of the overall point you are trying to make but regarding qualifications, it's a two-way problem. Britain didn't recognise any of the qualifications of a highly intelligent Japanese graduate I know who moved there in her late 20s, even basic school-level ones in maths! As a result, it took her ten years before she could start working as as a nurse (albeit taking breaks to have two children)

Can I also suggest that going to the local mall to count bags is not much a very good way to judge the health of the economy?!

0 ( +1 / -1 )

If you have a growing economy but a shrinking population, then who is doing the shopping? Is it Yumi in accounting? Dang it Yumi...

0 ( +2 / -2 )

The economy grew? Where? How? I love the smell of cow poop in the evening!

0 ( +3 / -3 )

Wow, a lot of disgruntled posters in denial today on this thread.

 

“I really get tired of these fluff pieces”

 

Official revised GDP data is “fluff”? Well, if you say so…

 

 

“So has their urging finally had some impact?”

 

Wages have been on an upward trend modestly in the last 4 years. We’ll have to wait for the spring labor negotiations to see if the cash-rich companies will agree to hikes by a higher margin.

 

 

“… and these numbers have yet to be checked.”

 

These are the checked numbers. They’re revisions of the preliminary numbers.

 

 

“Trickle down’ is when the government spends our money racking up huge debts,”

 

No it isn’t. It’s when the government creates conditions whereby companies and rich individuals get even richer, in the hope they will spend the extra money in ways that benefit everyone. It’s shown not to work so well.

0 ( +4 / -4 )

Wages have been on an upward trend modestly in the last 4 years. We’ll have to wait for the spring labor negotiations to see if the cash-rich companies will agree to hikes by a higher margin.

JeffLee- I think that the BOJ will soon achieve its target of 2% without doing anything (whether this is a worthwhile target or not is debatable). Like you, I've seen wages rise in the last few years. 5 years ago, most places in Tokyo were paying 900 yen an hour as the basic wage, now it's close to 1000 yen - still way too low, mind. The fact that the unions are talking about a 4% pay rise in the spring (which they won't get) means that they will get a modest rise, and these higher labour costs are going to feed into the price of goods. I'm expecting higher inflation and, as a consequence, interest rates in the future and have recently fixed my mortgage interest rate for 10 years on this expectation.

0 ( +1 / -1 )

cucas - I think you hit it when you said in Tokyo wages have risen 10%.

Go out into wider Japan where 60 ~ 70+ million live and you'll surely find a different set of bits &.

For most Japanese on minimun wages (read 10's millions) costs for daily necessities - fuel, food, utilities etc have risen - while income has been stagnant or fallen.

I just love how "they" project Roppongi et al onto the whole country. Most people do not have full time permanent jobs with established commpanies.

0 ( +1 / -1 )

Riding the global up up ..... and bitcoin before space station.

0 ( +0 / -0 )

If you are an english teacher in Japan receiving the usual poverty wages, of course you don't see any improvement. But the english teacher is invariably young and not interested in money so there's no problem here. The rest of us are doing very well here now, salaries and bonuses are rising fast for me and people I know.

0 ( +2 / -2 )

@fxgai

But that’s Abenomics.

There some elements, but Abenomics is about stimulus more than anything. The new spending package is money for farmers, small companies, and education and childcare to tackle inequality. That's hardly a "trickle down" approach. LOL

But I'm sure Abe will use this to tout his flailing "Abenomics" as a huge success.

The economy is in considerably better shape now than before Abenomics was launched (as I predicted back at the time, and for which I was bombarded "dislikes" on this forum). Now, the goal should be to tackle inequality and force employers to pay wages in line with their vastly improved earnings.

0 ( +1 / -1 )

Add to that Japan posting a recort current account surplus of 2.18 trillion yen in October. If your condition is not improving, you're doing something wrong. The past decade has been getting better and better for me (Not that I'm boasting or anything. Well, maybe a little.)

-1 ( +4 / -5 )

Um Australian wages, NZ wages are much higher the variety of foods more expansive and their lifestyle much better and they are not anywhere near being the 3rd biggest economy in the World, the growth of even should it ever happen of 2% will make no difference to my life. It's all going into government taxes politician pockets so a 0.2,0.3 0.6 movement really has no impact at all. Can't wait for the new tax hike that's going to strip me of more spending money, but I'm told we need cruise missiles, and a new vetenary university.

-1 ( +2 / -3 )

Such cynics on JT

-4 ( +6 / -10 )

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