zondag 3 januari 2016

A Look At The Ministry of Finance Japan Draft 2016 Budget

One year has passed and Japan has not deteriorated as many analysts predicted. The Japanese stock market has gone up 10% since last year, the yen has been flat against the U.S. dollar, the Japanese housing market is rebounding, real GDP is at 1% and people who invested in the Japanese bond market didn't lose any of their money.

I mentioned in a previous post last year that Japan's situation wasn't that bad at all. The current account was improving, the budget deficit was contained, bond yields were falling and I said that the benefits of the restart of the nuclear reactors was going to boost the economy of Japan. Well, two of the 48 nuclear reactors have been restarted and many more are going to be restarted as approvals are underway. With this in mind, let's see how the fiscal situation will look like in 2016.

Go here for the analysis.

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