Japan -The persistent impact of VAT rate hike is a drag for growth
The Japanese GDP has retreated during the second quarter. It was down by -1.6% (annual rate) after +4.5% during the first three months of the year. Compared to last year,…
Philippe Waechter's blog
3 graphs on the Japanese recession
The Japanese economy is back into recession. After the deep drop of the second quarter due to the VAT rate hike on April the first, the negative momentum has not…
Recession is the next step for the Japanese Economy
I have written different posts on the Japanese economic situation after the VAT rate hike (see here, here and here). This post is an update after the publication of sales…
Is Japan recovering from the VAT rate hike of April the 1st? Clearly it doesn’t
Is Japan recovering from the VAT rate hike of Avril the 1st? Not really when we look at July numbers on retail sales. (see here for a detailed analysis of…
An Unprecedented Negative Shock on the Japanese Economy in the second quarter
I have already spoken a lot on VAT rate hike in Japan and the negative impact that this fiscal measure has had on the economic outlook (see here, here and…
Japan – The negative impact of the higher VAT rate on sales can still be seen in May
The increase of the VAT rate on April the 1st was an important event in Japan but also for the world economy. The success or failure of the Abenomics was…
The Japanese Economy after the increase of the VAT Rate
The VAT increase on April the 1st has had a strong and negative impact on the Japanese economy. The inflation rate spiked to 3.4%, households’ purchasing power dropped dramatically and…
Japan in 4 Charts
On April the 1st, the Japanese VAT rate will raise by 3%, from 5 to 8%. Economic activity will slow down, during the 2nd quarter, in response to this negative…