May 21, 2019

Japanese Communist Party Secretariat Head Koike Akira on May 20 said that the Cabinet Office announcement claiming real economic growth at an annual rate of 2.1% twists the facts.

Earlier in the day, the Cabinet Office released preliminary GDP data for the January-March period and announced that the Japanese economy grew at 0.5% from the previous quarter and at 2.1% on an annualized basis.

At a press conference in the Diet building, Koike criticized these figures as statistical manipulation and said, “The government insists that Japan experienced economic growth for two consecutive periods. However, no one in the general public can feel the economy improving.”

Koike pointed out that the main driver of GDP expansion is the greater diminution in imports compared to exports. He explained, “A slowdown in domestic demand and a decline in imports caused Japan’s GDP to look like it is expanding.” He continued to say, “GDP data regarding personal consumption and corporate capital investment provided negative figures. Japan’s economy keeps on worsening. This is the reality.”

Referring to the government argument that "economic fundamentals remain solid and the nation’s economy is on recovery track,” Koike said that the government provides faulty information regarding current economic conditions.

Past related articles:
> Gov’t admission of ‘worsening’ economy adds yet another reason to oppose planned consumption tax hike [May 14, 2019]
> GDP decline at annualized 0.6% highlights failure of ‘Abenomics’ [May 17, 2018]