Source Pravda.Ru

Japan's Economy Grows Slower than Expected, New Data Show

Official data have shown that Japan's economy increased by much less than first estimated in the July to September period.

The economy only grew at an annualised rate of 1.3% during the third quarter, down from the previous estimate of 4.8%, said the Cabinet Office.

The main reason for the change was a sharp downward revision in the amount companies had invested in new assets.

The figures come a day after the government agreed a new stimulus deal, BBC News reports.

Meanwhile, Japan's Chief Cabinet Secretary Hirofumi Hirano said on Wednesday that the government may have to issue more than 44 trillion yen (500 billion U.S. dollars) in government bonds if it is to fulfill campaign pledges set out in its manifesto this summer.

"The drop in tax revenues has made it difficult for the government to realize the action plan it promised in its manifesto," Hirano said. "I assume the Prime Minister (Yukio Hatoyama) thinks it is important to maintain fiscal discipline, but also wonders if he should say no if new bonds will affect people's lives."

In a campaign this summer, the Democratic Party of Japan (DPJ) pledged to change Japanese politics, to move the focus of spending away from major public works projects and into the hands of families and households.

Keeping to those pledges has proved difficult as the economy has made only a tentative recovery, and businesses have refrained from investing large amounts of money while the yen has risen to 14 year highs against the dollar. This has led to a drop in tax revenues, which has given the government less money to spend in its next budget, Xinhua reports.

It was also reported, that economists warned that the stimulus measures might not have much effect, as there was insufficient new spending, and the pace of economic recovery would be very slow unless further steps were taken.

"I expect the B.O.J. and the Democratic Party government to do something that will have an immediate effect to keep the Japanese economy afloat," said Yoshikiyo Shimane, chief economist at Dai-Ichi Life Research Institute, referring to the Bank of Japan.

"It has been said the Japanese economy bottomed out this past spring, but the July-September figures confirmed that the recovery is very weak," The New York Times reports.

The US is going to ban exports of Iranian oil to the world market from November 5 of this year. In turn, Iran threatens to block the passage of oil tankers of the Gulf countries through the Strait of Hormuz

Will Iran close the Strait of Hormuz to trigger global oil crisis?

The World Cup that is about to finish in Russia has shown that the Western propaganda machine has failed to create the image of Russia as a monster with "many tentacles." By and large, the Russians and the Ukrainians are close to each other

Putin-Trump meeting to decide the future of Ukraine
Comments
Chechen police officers ordered to get second wives for themselves
Chechen police officers ordered to get second wives for themselves
Chechen police officers ordered to get second wives for themselves
Will Iran close the Strait of Hormuz to trigger global oil crisis?
Will Iran close the Strait of Hormuz to trigger global oil crisis?
Will Iran close the Strait of Hormuz to trigger global oil crisis?
Will Iran close the Strait of Hormuz to trigger global oil crisis?
Will Iran close the Strait of Hormuz to trigger global oil crisis?
The Future of NATO
Will Iran close the Strait of Hormuz to trigger global oil crisis?
China weaves financial web to oust Russia and USA from Middle East
China weaves financial web to oust Russia and USA from Middle East
Will Iran close the Strait of Hormuz to trigger global oil crisis?
China weaves financial web to oust Russia and USA from Middle East
The Future of NATO
The Future of NATO
New Russian weapons: Already obsolete?
Russian Defense Minister speaks about war with Ukraine, US and fight for Crimea
Russian Defense Minister speaks about war with Ukraine, US and fight for Crimea
Russian Defense Minister speaks about war with Ukraine, US and fight for Crimea
New Russian weapons: Already obsolete?