Japan: In need of extra stimulus, says PM Abe adviser – Goldman Sachs

FXStreet (Delhi) – Samuel Wong, Fixed Income Strategist at Goldman Sachs, notes that “Japan needs more economic stimulus to stave off a serious shock from China, according to one of Prime Minister Shinzo Abe’s closest advisers.

Key Quotes

“Etsuro Honda, an architect of Abenomics in his role as special adviser to Mr Abe, said passing a supplementary budget to boost the stagnant economy was an “urgent task”. “I don’t think we should call it a technical recession yet, but generally speaking, the Japanese economy is in a static situation,” Mr Honda said in an interview with the Financial Times.”

“It is not growing positively.” Mr Honda’s comments highlight the depth of concern in Tokyo about where demand will come from, as crucial export markets in Asia slow down, while consumers continue to struggle at home.”