Japan Recession 2014: Why Abenomics Isn't Working

http://www.ibtimes.com/japan-recession-2014-why-abenomics-isnt-working-1743270

In the midst of its multipronged economic revitalization program known as “Abenomics,” Japan is deeper in recession than previously thought. Data released Monday revealed the world’s third largest economy contracted more than expected in the July-September quarter, leading many economists to conclude at least one element of Prime Minister Shinzo Abe’s recovery plan was ill-conceived: increasing the country's consumption tax from 5 percent to 8 percent.

Japan stunned economists in November, unexpectedly falling into recession. The recession prompted Abe to delay a sales tax hike for 18 months. The tax was meant to follow the consumption tax increase that went into effect in April and is widely blamed for pushing the economy into recession.

Monday’s data revealed Japan’s GDP for the most recent quarter contracted at an annualized 1.9 percent rate, higher than the initial 1.6 percent annual rate reported last month, igniting concerns about Abe's effort to spur growth.