Companies expect stable inflation to set in

Jul 2, 2014

Companies expect stable inflation to set in

Companies are forecasting sustained price gains, providing support for the Bank of Japan’s campaign to generate stable inflation. They forecast inflation of 1.5 percent per year, unchanged from three months ago, the BOJ reported Wednesday. Companies see prices rising 1.6 percent from a year ...

Jul 2, 2014

Abe growth-related goals may avoid budgetary curbs

The government, while planning strict budget limitations for the next fiscal year, will give special treatment to upcoming request items that are deemed important for Prime Minister Shinzo Abe’s growth policy, NHK reported Wednesday. To stabilize the nation’s finances, which are in tatters, the ...

Jul 1, 2014

Abe's economic bull's-eye

by Koichi Hamada

Prime Minister Shinzo Abe has unveiled the so-called third arrow of what has come to be known as Abenomics. It involves the removal of obstacles to growth for business, particularly the easing of regulatory barriers. Expect some officials to resist this initiative.

Output rises 0.8% in tax hike rebound

Jun 30, 2014

Output rises 0.8% in tax hike rebound

Industrial output recovered slightly in May from an earlier decline sparked by April’s sales tax hike, stabilizing as factories produced more machinery, vehicles and electronic devices, government data showed Monday. Factory output in the world’s third-largest economy climbed 0.8 percent in May from a ...

Jun 30, 2014

World Bank's Kim optimistic about Abe's 'third arrow'

World Bank President Jim Yong Kim has voiced optimism about Japan’s revamped growth strategy, the “third arrow” in Prime Minister Shinzo Abe’s three-pillar economic policy package called “Abenomics.” Abe’s commitment to tackling “rock hard regulations” related to employment, agriculture and health care is a ...

Abe's 'drill bit' buckles on labor reform

Jun 29, 2014

Abe's 'drill bit' buckles on labor reform

by Antoni Slodkowski

When Prime Minister Shinzo Abe vowed at the World Economic Forum in Davos to take a “drill bit” to the “solid rock” of vested interests blocking reforms to Japan’s economy, executives at companies such as General Electric and IBM paid attention. In the months ...

Prices climb most in 32 years as wages limp along

Jun 27, 2014

Prices climb most in 32 years as wages limp along

Consumer prices climbed in May at their fastest pace in 32 years, swelled by the hike in the consumption tax and higher utility charges that are squeezing Japanese budgets as wage gains remain limited. Consumer prices excluding fresh food but not energy, rose 3.4 ...

Corporate tax cut no 'magic wand,' warns ministry adviser

Jun 26, 2014

Corporate tax cut no 'magic wand,' warns ministry adviser

The plan to cut the corporate tax won’t be “a magic wand,” warns Hiroshi Yoshikawa, a key adviser to the finance minister. The Abe administration on Tuesday adopted new economic and fiscal policy guidelines that call for, among other things, lowering Japan’s effective corporate ...