Japan to Declare End of Economic Expansion from 2012
Tokyo, July 22 (Jiji Press)--The Cabinet Office is seen declaring an end of the Japanese economy’s latest expansion from December 2012, when Prime Minister Shinzo Abe returned to power, it was learned Wednesday.
An expert group of the Cabinet Office is likely to date the most recent peak in the business cycle at October 2018. This would mean that the expansion lasted 71 months, the second longest since the end of World War II after the 73-month boom that ended in February 2008.
The start of the latest expansionary phase coincided with the launch of Abe’s second administration. Its Abenomics reflationist policy mix featured massive monetary easing, which helped push down the yen while boosting stock prices, supporting the economy.
But the expansion lacked vigor. The average annual growth rate during the period stood below 2 pct.
In October 2018, Japanese exports and production were faltering in line with a global economic slowdown prompted by an intensifying trade spat between the United States and China.
[Copyright The Jiji Press, Ltd.]