Public debt, deficits and economic reform in Japan
It seems Japan can not escape the global crisis and called this week make it appear nothing more depressing news about the Japanese economy.
The first is the announcement on Tuesday to raise the tax to the consumer (which we call IVA in Spain) of the current 5% to 10% by 2015. The story goes like this:
Japanese Prime Minister, Yoshihiko Noda, announced Tuesday that presented by the end of March a project to double the consumption tax, to perpetuate the social protection system and contain the massive debt the country.
"The bill of the government and the majority coalition plans to increase the consumption rate (the current 5%) to 8% in April 2014 and 10% in October 2015 if the economy recovers by then," Noda said in the House of Representatives in the resumption of the parliamentary session.
Moreover, the debt of third world economic power reaches 200% of its GDP, the highest rate among developed countries, and the government contributes more than half its budget to the issuance of new bonds.
Via: Estrategiaynegocios
But if doubling the tax to consumers twice was not enough, the IMF advised not to bend, if not triple it by 2015.
The International Monetary Fund (IMF) urge the Japanese authorities to tow ahcer immediate steps to address its billion dollar public debt.
The monetary authority consider insufficient the proposal of Prime Minister Yoshihiko Noda increase the consumption tax to 10% by 2015.
Speaking to the press, the IMF official, Philip Gerson, recommended to increase the consumer tax to 15% but not necessary the deadline for tax reform should be modified.
The IMF cautioned that while the value of Japanese government bonds continued to fall, Nippon authorities can not continue to allow the large public debt.
Via: noticiasnippon
Finally, other news this week on the Japanese economy was in 2011 that Japan record its first trade deficit in 31 years:
Japan posted its first trade deficit in 31 years last year due primarily to the impact on the economy caused by the earthquake, tsunami and the accident at the nuclear Fukushima One in March.
The Ministry of Finance announced in its preliminary report on Wednesday that Japan posted a trade deficit of 32,100 million in 2011. Imports rose 12% and exports fell by 2.7%.
The deficit is partly attributed to the fall in exports of automobiles and other products due to problems in supply chains as a result of the disaster of March.
The Fukushima nuclear accident also caused a sharp increase in imports of liquefied natural gas used in power plants.
Exports also fell as the yen's strength against other currencies and the fall gener
Via: NHK World




























