The headline to this post will not be news to those who have following along in the past couple of weeks.
But … in summary:
- Japan back into recession as Q3 GDP (preliminary) comes in at -1.6% y/y
- This paves the way for Abe to call for a delay in the sales tax hike and to call an early election. Again, this is not news or insight, the writing has been on the wall for a few weeks now.
- Expect an announcement of both from Abe on Tuesday.
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Abe’s governing coalition has a huge majority. He might lose a few seats at the early election but he will cement his position for another 4 years. I think he may well see very hard times ahead. (& I think he may be right).
