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Japan’s Abe Poised to Take Election Gamble

Wall Street Journal Original article ›

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Voters overwhelmingly oppose the tax increase in 2015 taking the consumption tax from 8% to 10%. The Abe government plans to postpone the tax increase and call snap elections in December 2014. Two thirds of people surveyed said they did not see why new elections are needed. For prime minister Abe this is an effort to win a vote now rather than later when the opposition is weak. In 2012 elections Abe won 295 of 480 seats in the lower house of parliament. LDP party officials say even if this dropped by 20-30 seats it would be a win for Abe reaffirming that his economic policies are taking Japan in the right direction towards growth, and extending the length of his mandate. They point to growth in tourism, and the addition of 1 million new jobs. Further action to stimulate the economy would reduce unemployment further and end Japan's deflationary tendencies.

Japan's GDP growth and the proposed increase in the consumption tax- 2013-2014

06/11/2010

The proposed increase in the sales tax to 10% to improve the Japanese government finances and the problems posed by lower GDP growth in the second quarter of 2013. The risk of derailing the economic recovery and the fight against deflation by a premature increase in the sales tax.

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Grouped Articles

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Japan’s Abe Poised to Take Election Gamble

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The Nikkei's rally in 2012-2013 with new policies of the Bank of Japan and the Abe administration for reviving the Japanese economy. A shift to institutional investors reduces volatility in the Nikkei in July 2013. The Abe LDP party's win in upper house elections in July 2013 also brings stability to the administration and increases credibility for the planned changes to the economy to increase growth.

Grouped Articles

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Shinzo Abe’s Bid to Shake Up Corporate Japan

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