Mr. Abe must really be doing something right here.
The Gross Domestic Product, April-June Real growth (this would be Quarter 1 in the Japanese economical calendar) grew at an annualized rate of 3.8%.
This is without the announcement of the Olympics the other day.
This was very unexpected, with just last week some investors in japan saying that the GDP wouldn't soar as high as they thought.
This is some fuel for the assertion that Japan should raise the consumption tax. The strongest argument against raising the tax is the catastrophic results of the last raise in 1997....but currently, Asia is not in a recession. S. Korea seems to be doing well, and we all know what China's doing.
I say raise the tax and alleviate the debt for now, and then when the cogs are spinning at warp speed, cut the tax and let the trickle down effect take hold. The bulk of Japanese investment this quarter is in southeast Asia now, and Abe was very smart to jump right into the Myanmar market. So let's hope this works. The Olympics will definitely provide a huge boost to the Japanese economy as well.
Some good and happy times in Japan recently. Thoughts?
Here's the Japan Times article: