business

Japanese firms brace for economic contraction after Olympics

29 Comments
By Tetsushi Kajimoto

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29 Comments
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The Olympics are over 7 months away and already the propaganda ministry is preparing the public for a possible recession! On top of the bad economic news following the consumption tax increase as well!

12 ( +13 / -1 )

I think ‘contraction’ is quite an understatement.

8 ( +9 / -1 )

Basically the government flushed $20 billion into the economy under the lie of the Olympics as an artificial prop to the economy... and now the ride's ending.

11 ( +12 / -1 )

Wow $20bln gone and already...

Some 65% also urged the government to compile fresh economic stimulus to underpin a fragile economy after the 2020 Olympics.

The government has just announced one recently and people want another one lined up for later!?

They really need to be told to get better at business instead of relying on government handouts...

10 ( +11 / -1 )

Japan doesn’t have an export-led economy. Personal consumption makes up more than half of the GDP while export accounts for less than 15 percent. The reason for the two decades of zero economic growth is that government after government they have stuck to tight fiscal policy and reduced public works spendings to the lowest level.

2 ( +4 / -2 )

Another doom and gloom article from Reuters about Japan.

"The economy is already in recession."

The figures say otherwise.

-23 ( +1 / -24 )

Duh...and if trump decides to go to war with Iran, watch the crude prices spike. On top of that, Abe and his cronies announced that patient medical payments will increase to 20%. For a country that is aging and living on a fixed income, this is going to hurt.

7 ( +8 / -1 )

I am really worried about that.

I work in a car factory in Japan and since 4 months ago there isn't any overtime at all because there isn't enough car parts production.

Another car factory in the city where I live was closed recently, the people that worked there had to find another jobs elsewhere.

If my factory closes, I will need to find another job too.

14 ( +14 / -0 )

The reason for the two decades of zero economic growth is that government after government they have stuck to tight fiscal policy and reduced public works spendings to the lowest level.

No, Japan is mired in ongoing economic coma / ever increasing debt precisely because the idiotic administration after administration keep wasting public funds on unnecessary expenditures and white elephants for their cronies in J Inc year after year instead of adressing the issue which is over regulation of every aspect of Japanese economy ( and society for that matter ) that strangles business inovation . Of course , Shin chan promised to adress that with his MIA third arrow that is still nowhere to be seen, as are most of his other pledges. Sassuga....

12 ( +13 / -1 )

Japanese firms are overwhelmingly expecting the economy to contract after the 2020 Tokyo Olympics following growth in the run-up to the event, prompting a call for fresh fiscal stimulus to support a fragile economy,

and what does the Japanese Government do?

The Japanese government on Thursday compiled an economic stimulus package totaling 26 trillion yen ($239 billion)

Well done PM Abe! Responding and taking care of the needs of the Japanese people.

This is Japan. Getting it done!

-16 ( +1 / -17 )

I think the title should read "Firms Brace for Tokyo/Kanto Economic Contraction". They're the ones who were mainly served by this financial boondoggle.

If they bothered to look, the rest of the country has been suffering just fine, thank you.

Maybe now they could put some of the billions of dollars into helping the rest of the country instead of using all the country's resources in making playgrounds for athletes.

13 ( +13 / -0 )

endless stimulus to cover the useless game...

the fall will be severe.

10 ( +10 / -0 )

I had the same idea and sold my stocks months ago. But the stock prices are going up. I am regretting I sold my stocks too early.

-2 ( +3 / -5 )

Demand shifted forward more than anything (little multiplier effect).

1 ( +1 / -0 )

Proactive propaganda paving the way for more taxpayer dollars to be dished out to favored corporations in the form of "economic stimulus"... Why doesn't the govenment simply let the economy contract naturally until it reaches stasis, rather than continuing to print money to prop it up without distributing the money to those who would spend it in the form of higher incomes? It's like putting water in a leaky bucket.

10 ( +10 / -0 )

And well they should.

-2 ( +0 / -2 )

As I've been saying for years, the Olympics will Japan's swan song.

8 ( +9 / -1 )

will be

2 ( +2 / -0 )

@vanityofvanities, don't worry about it. Stay liquid. Put a third into the most valuable currency you believe will ride out the storm and leave the other two-thirds for quick in-and-outs.

Been there, done that.

4 ( +4 / -0 )

2025 Osaka Expo - 2030 - Sapporo Winter Olympics (bidding?) - and a goal of 40 million tourists annually wanted for their money and unwanted for their picture taking and lack of culture. The next 10 years for Japan.

7 ( +7 / -0 )

Yes, wanderlust, let's go for another bid! We could also have the winter Olympics in Okinawa. Don't worry about there being no snow - we'll sort that out after we've won the bid!

10 ( +10 / -0 )

Here’s a handy tip!

In the morning just eat breakfast then for lunch two glasses of water!

Slow your pace in the afternoon and fight for a seat on the way home to conserve energy.

Then, have a high carbohydrate dinner of white bread and rice.

Wrap up with three blankets until bedtime and you will soon be beating these harsh economic conditions....!

7 ( +7 / -0 )

The figures say otherwise.

the 4th quarter figures arent even in yet, will quote you again when they are.

6 ( +6 / -0 )

@Yubaru

Contractions and recessions are extremely common after the Olympics leaves a country. Before and when the Olympics arrives, these economies see a large boom.

prompting a call for fresh fiscal stimulus to support a fragile economy, a Reuters poll showed

Companies wanting the government to pump more money into them are simply running from what they have to do which is increase pay. Companies here have already shown that no matter how much profit or government funding they receive, they won't do anything other than increase their own savings.

6 ( +6 / -0 )

That’s right. Go ahead. Waste a few more ¥trillion we don’t have. After all, it’s the kids or grandkids and the newly arriving foreigners who are going to pay for it. For the most part the Kasumigaseki guys will be out in the pasture, what do they care?

9 ( +9 / -0 )

An aging population and a culture of people who need to impress by indulging in frequent vacations to Hawaii, where I now live and work btw, where they spend enormous amounts of money on luxury goods will undoubtedly soon lead to their ultimate demise. I work in retail and it's disgusting to watch them drag in three or four kids with them and easily purchase thousand dollar items when they're already paying $400 a night for a hotel room.

For those of us living here in Hawaii it is incomprehensible. Some of us often work two jobs just to make ends meet. Paying the high cost of rent and food leaves nothing left for anything else.

It's one of the reasons why now Japanese, in particular, are being attacked and retaliated against for their lavish lifestyles.

Just recently a Japanese woman was attacked at Moanalua Gardens here in Honolulu. Her purse was snatched and the perpetrator ran her over twice with his vehicle while fleeing the scene. He has yet to be apprehended.

Locals living here know Japanese are an easy target, gullible, are most likely not to defend themselves or, for that matter, even be able to and oftentimes are carrying large amounts of cash with them.

Most Americans and Europeans don't carry cash but rather use a credit card or mobile pay to make a purchase. It is well known that Japanese tend not to trust these forms of payment when traveling abroad and therefore rely on cash payments. Little do they realize that they are putting their lives at risk by doing so.

Adding to the problem is the hatred from some of the local community whose only choice of employment involves working a job that depends upon lavish spending Japanese for their livelihood, and the result is an inherent resentment for them.

Japanese, in my opinion, need to curb their spending and come to the realization that spending abroad is not helping their economy and putting them further in personal debt.

The Japanese mentality of trying to keep up with the Jones needs to end. Nobody really cares about the $2,000 Moncler jacket and Louis Vuitton handbag they are flaunting except those criminals who know they're an easy target.

8 ( +8 / -0 )

I usually stop myself, but for godssake, can JT STOP with the inane photograph caption phrase "are seen"? It is entirely unnecessary and yes, since we are looking at said photo, we see it. There. Done. Good night.

5 ( +5 / -0 )

The Japanese government on Thursday compiled an economic stimulus package totaling 26 trillion yen ($239 billion)

Well done PM Abe! Responding and taking care of the needs of the Japanese people.

This is Japan. Getting it done!

LOL...thanks for the entertainment.. LDP taking care of needs of Japanese people... thats comedy gold...:)....Really, do your bosses feed you guys the lines or do you make them up yourselves? Love it.

4 ( +4 / -0 )

Too late, already here.

0 ( +0 / -0 )

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