MOSCOW, Aug. 13. Japan’s GDP fell sharply in the II quarter of 2014 after increasing the tax rate on consumption.
The economy lost in the previous quarter to 6.8% compared to January-March of this year. This is the maximum decline since 2011. However, the value was higher than the median forecast of economists is expected to fall by 7.1%, according to “News Economy”.
Consumer spending in Japan in April-June collapsed by 19.2%. Imports fell by 20.5% compared with the previous three months, exports decreased by 1,8%.
In the I quarter the economy grew by 6.1%. The significant increase is due to the fact that the Japanese are actively purchased big ticket items before the rise since April 1, the consumption tax to 8% from 5%.
Chapter Japanese government Shinzo Abe to be a tough decision. According to the presented earlier plan to reduce the national debt, sales tax in the next year may be increased to 10%. However, the increase is only possible if the economy will show a sustained recovery. Abe’s decision should announce before the end of 2014.
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