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Japan GDP fell sharply in Q3

12 Nov 2012 by Jim Fickett.

Today the Cabinet Office in Japan reported GDP through Q3. Given the recent performance of industrial production (Manufacturing in Japan continues sharp decline) it is not a surprise that GDP dipped sharply.

Note that the level of real GDP is still well below its 2008 peak.

The main story in Japan is, of course, unsustainable debt. Poor performance of the overall economy makes it that much harder to cut spending and increase taxes, which is what is needed for the long term.

Discussion

patb, 2012/11/13 17:25

the debt is sustainable at the current interest rates.

But they are screwed if the rates pop even a point

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