The global financial crisis is still very much ongoing—much of the aftereffects of the major events are still affecting us today. The aftereffects are so strong even that I, Jason Galanis, believe they are causing various economies to stagnate, diminish or have trouble growing despite healthy activity.
In spite of a moderately recovering economy, the Japanese government recently revised and downgraded their previous assessment of their economy, citing ‘weak production.’
The Tuesday report was the first time since 2012 that the Japanese government downgraded its economic assessment in two straight months.
The country’s recently released monthly economic report revealed the government’s statements regarding the matter. The government stated that the ‘overall economy was experiencing moderate recovery, but weakness was seen [in several sectors] recently.’
The revision is actually the second revision to occur over the past two months. September’s initial assessment also cited ‘some weakness in production,’ however further observations have made them seek another revision to more or less accurately report the forecast.
The country’s industrial output, which was said to be ‘decreasingly recently due to a lack of demand,’ contributed to the government’s reasoning for choosing to revise the initial forecast.
Despite the initial tax hike, the Japanese government is expected to raise sales tax again in 2015. The impending increase will raise the rate from 8 percent to 10 percent; the initial raise took the tax from 5 percent to 8 percent.
However, the next increase is only expected to take place should economic conditions permit it—and if it’s not further postponed by Prime Minister Abe’s advisers and other lawmakers.
In the wake of the revised economy forecast, the prime minister stated he would ‘continue to pay close attention to growth figures for the July-September quarter when [he] makes a final decision regarding whether to proceed with the next sales tax increase.’