You are here: Home - Investing -

Abe to call snap Japanese election in December

0
Written by:
18/11/2014
Japanese prime minister Shinzo Abe has told senior politicians he will delay a proposed sales tax rise and call a snap election in December, according to reports.

Abe informed the leaders of his ruling Liberal Democratic Party of his decision to call an election next month ahead of a news conference today, Japanese public broadcaster NHK reported.

The move comes after Japan’s economy slipped back into recession, with GDP shrinking for a second successive quarter.

After taking power in 2012, Abe launched ‘Abenomics’, a mixture of stimulus and reform measures designed to break the deflationary cycle and return Japan to growth. Markets responded, with the TSE Topix and Nikkei 225 indices both outperforming the MSCI AC World index in 2013.

However, 2014 has proved to be much more difficult. After the introduction of a sales tax earlier this year, GDP plunged 7% in the second quarter compared to the same time last year. A second hike in the tax was planned for October 2015.

JO Hambro Capital Management Japan fund manager Scott McGlashan said: “If Abe can maintain his two-thirds majority in the lower house his position will be greatly strengthened as he can force legislation through.

“His main opposition in recent months, however, has not been parliamentary but from the Ministry of Finance. Yesterday’s poor GDP figures have weakened the Ministry’s ability to frustrate the prime minister and his Abenomics.”

 

Related Posts

Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
No rise until late next year, says Cazenove’s Jeffries

Richard Jeffries, chief investment officer at Cazenove Capital, says the Bank of England could have raised interest rates this year,...

Close