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Japanese economic growth for April-June smashes expectations

26 Comments
By Hiroshi HIYAMA

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Marcel Thieliant at Capital Economics said that real household disposable income plunged by 4.5 percent year-on-year in the quarter, and that it would continue to fall until the second half of next year.

To contrast the ecstatic headlines about rising Japan Inc. profits, the real news for the workers of Japan is almost always hidden at the end.

11 ( +18 / -7 )

However, economists said that the data also underscored the continued weakness of domestic demand as Japanese families struggle with rising prices.

And not to forget stagnant wages

"But with car exports now at a record-high and Japanese carmakers having fallen back in the electric vehicle race, that's unlikely to be sustained," Thieliant said, forecasting a "renewed slowdown across the second half of the year."

China is a major player in the EV market and some companies there are out to dominate the market with products costing 75% or less than a comparable Japanese made product.

Unfortunately, Japan’s decline and stagnation goes much further than “the second half of the year”

-4 ( +9 / -13 )

Yes, this report is a real nothing burger for those of us working and living in Japan. Salaries are dropping and prices are rising. Only a few of the good old boy companies are reaping the benefits, but not passing them on to the rest of us!

9 ( +12 / -3 )

But I see people struggling with low wages and inflation at the supermarket and energy prices rising .

It's a land of the have and the have nots.

The 1% get massively wealthy while the average worker just suffers.

Welcome to Japan the land of the working poor.

-2 ( +12 / -14 )

However, economists said that the data also underscored the continued weakness of domestic demand as Japanese families struggle with rising prices.

Hidden towards the very end of a "rah rah rah" article, is the truth! "Struggle" is hardly the word, and Japanese are famous for becoming penny pinchers when the economic outlook is not good! Mom's close their wallets, and Dad's see their allowances get cut!

All the bs articles about the zaibatsu raising wages 3.8% was it, was more of the same propaganda being used to cover the fact that life is getting even tougher for the average Japanese consumer.

Rising prices is one thing, seeing or getting a feeling that things will get better, meaning "consumer confidence" is no where to be seen. The media everywhere is putting out articles about how great things are going, but when the house is built on a non-existent foundation, it is sure to crumble! All the fan fare in the world will not change the facts that things for at least the next few years here, are not looking too bright!

8 ( +13 / -5 )

Japanese corporations are healthier than they deserve to be. The data tells us that the government needs to rescind the corporate tax cut of 2018. It was supposed to lead to substantive wage hikes. It has not. It is a failed policy -- so end it. In the meantime, rescind the last few consumption tax hikes.

13 ( +16 / -3 )

1.5% growth smashed expectations!!!! Holly Makarov! Tell the economics professors at 東大, 京大 and etc that Marx's basic analysis in Das Kapital was wrong.

But wait, that outstanding 1.5% growth may not last? Ok, better hold off on the lectures at 東大, 京大 and etc.

-2 ( +4 / -6 )

well i am not "impressed" as reality of everyday life saying something else and that story is not "that much happy" at all...

-1 ( +5 / -6 )

Will this reduce the inflation?

3 ( +4 / -1 )

It has been reported that the EV market has hit a plateau because the early adopters have already purchased their EV's. The next market segment, traditional car buyers, will be a challenge because they are leaning towards purchasing hybrids instead of going all in on EV's. The biggest objection is range and frequency and availability of charger locations. Up to now, only Teslas have the superchargers and locations.

Toyota is the leader in hybrids and they will remain the leader unless the hybrids are outlawed in the U.S. market. You never know what President Biden will do to eliminate the use of fossil fuel. Yes, he is that dumb!

-2 ( +3 / -5 )

Yeah yeah yeah. 1.5% growth but what above massive fall during COVID years? Lol We just getting back to pre-Covid levels, and haven't had any real year-on-year growth for more than 30 years.

3 ( +4 / -1 )

The weak yen is good for some..

4 ( +4 / -0 )

the Showa era is back in full force

1 ( +3 / -2 )

Of course it shows growth due to the high inflation. Selling less for higher price produces higher gdp as it is not inflation adjusted.

3 ( +3 / -0 )

Average salary man are pinching pennies during the inflation and the tourist growth is not enough to compensate

2 ( +4 / -2 )

Contrast this to the UK where inflation is sky high and the economy is barely growing. Even the population of the UK increased and the GDP didn't increase.

I've not seen the yen at 185 to the pound for a long time. 12 years ago I worked as an English teacher for 3M per year which now seems an incredibly low wage. I understand those salaries haven't changed much since.

3 ( +3 / -0 )

Contrast this to the UK where inflation is sky high and the economy is barely growing.

We are seeing the consequence of austerity measures, on the one hand, versus radical borrowing and stimulus, on the other. Interesting how both countries are run by conservatives yet they are completely polar in their attitude.

Nevertheless, the UK is at least reasonably fiscally responsible - Germany much more so. UK wages are higher and the population is projected to grow. The point I would always argue is debt is so stratospheric in Japan's case that occasional growth - even decades of stagnation - is all a bit of an illusion.

2 ( +2 / -0 )

Chibakun...

I've not seen the yen at 185 to the pound for a long time.

Wonderful isn't it....If you are sending funds from the UK.

1 ( +1 / -0 )

You may not see extra cash in your hand, but economic growth benefits everyone.

If you want to in on some of these profits, try opening up a trading account and putting a little cash in there each month. That's what the vast majority of the population have been doing all these years.

You wouldn't want to get to retirement and realize the money manager in your household has been "diversifying" your hard earned savings by splitting it over yen savings accounts at all the Japanese megabanks...

0 ( +0 / -0 )

I'm voting JeffLee for PM next year. Well said!

1 ( +2 / -1 )

12 years ago I worked as an English teacher for 3M per year which now seems an incredibly low wage

Impossible to believe that anyone would work for such an appallingly low wage. I don't believe it.

-2 ( +1 / -3 )

Impossible to believe that anyone would work for such an appallingly low wage. I don't believe it.

The salary hasn't even changed and people are queuing up to go to Japan.

I actually know some guy who's been there since 2008 earning 3M per annum, working the same job for literally 12+ years.

0 ( +0 / -0 )

Anyone one coming to Japan to teach English should definitely reconsider due to the lack of opportunity and the pitiful yen to whatever exchange rate

2 ( +2 / -0 )

Japan's trade balance fell back into the red in July with a deficit of 78.7 billion yen as exports dropped for the first time in over two years. ........That is the headline for a story just above this one..........................

The world's third-largest economy expanded 1.5 percent quarter-on-quarter in the three months to June, preliminary government data showed, the fastest rate since the fourth quarter of 2020.

Very confusing indeed, perhaps I should go back to Uni and take an Economics course.

0 ( +0 / -0 )

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