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Instead of minus 0.4 plus 0.5 percent market values - Japan's economy shrank in the third quarter surprising. The yen fell as a result of a seven-year low and the Nikkei index closed 2 percent lower.
The hopes for an economic recovery in Japan have been dashed. In the third quarter, the third largest economy in the world shrank unexpectedly by 0.4 percent as the government in Tokyo announced on Monday. Experts were opposed assumed to increase by 0.5 percent compared to the previous quarter.
Investors reacted to the numbers scare: the stock market was in response to the unexpectedly poor economic data over 2 percent. The Minister for Economic and Fiscal Policy, Akira Amari, the poor economic data mainly justified with the fact that private demand has not recovered as expected.
The Japanese economy is still fighting so that VAT was increased from 5 to 8 percent in April. Therefore, the economic output fell in the spring by 1.9 percent. A reduction in the following quarter, most experts speak of a recession.
A confidant of Prime Minister Shinzo Abe had said that the Prime Minister would move the second stage of the VAT increase from 8 to 10 percent well. In addition, he might prefer choices to get more support for his policies.
VAT was increased from 5 to 8 percent in April and was supposed market values to rise to 10 percent in October market values 2015. The decision is to Japanese media reports this week. (SDA)
After 5 years of upward transition on the stock exchanges, even though market values the world economy is anything market values but goes well, the big bang is only a matter of time. Have the politicians and central bankers really thought they could stimulate economic development by printing money. The big crash is imminent!
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