Japan GDP Sees Huge Upward Revisions

Japan GDP Sees Huge Upward Revisions

Last night it was announced that the Japanese economy grew at an annualized rate of 3.8% from April to June of this year. This handily beats the previously reported number of 2.6%. The gain has been attributed to large corporate expenditures and comes alongside the swiftest acceleration in lending since 2009. These new data points will surely bolster the case for Abenomics but should also provide cover for the government to levy a much-debated consumption tax hike. Officials are looking to raise the tax from its current level of 5% to 8% next spring, then again to 10% in 2015.

“Companies are replacing old equipment, which led to the large upward revision to GDP,” said Hiroaki Muto, senior economist at Sumitomo Mitsui Asset Management. “This means the government can raise the sales tax as scheduled.”

upward revision

This Tiger grand-cub was flat during Q2 but is ready for the return of volatility

Tiger Legatus Master Fund was up 0.1% net for the second quarter, compared to the MSCI World Index's 7.9% return and the S&P 500's 8.5% gain. For the first half of the year, Tiger Legatus is up 9%, while the MSCI World Index has gained 13.3%, and the S&P has returned 15.3%. Q2 2021 hedge Read More

Via: floatingpath.com

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