Japan’s economy shrunk further in the last quarter of 2015, becoming the latest figure to call Prime Minister Abe’s economic policy into question.
Between October and December of last year the economy shrank by 0.4 percent compared with the previous quarter, below expectations of 0.3 percent. A slew of recent economic figures have pointed to a decline in Japanese economy, including weaker domestic demand and slower investment in housing.
Furthermore, in the last two weeks the Japanese government lowered their interest rates into negative territory, and saw Japanese stocks enter a bear market after tumbling over 8 percent in two days.
Prime Minister Abe has been pursuing an economic policy known as ‘Abenomics’ since coming into power, using the ‘three arrows’ of expanding monetary supply, increasing government spending and implementing government reforms in order to combat Japan’s slowing economy. However, the latest sets of figures are further evidence that this plan may be failing to hit the mark. In Parliament on Monday, Abe made a statement seeking to reassure his country:
“As we have agreed at G7 and G20, sudden currency moves are undesirable. I want the finance minister to closely monitor the situation and respond with appropriate measures as needed,” he told parliament on Monday.
15/02/2016
