- Shinzo Abe, Japan's Prime Minister
Japan's Prime Minister Shinzo Abe dissolved the parliament and called an early election as he sought to prolong his term and save his Abenomics policies as the country slipped into recession. Early parliamentary elections are scheduled for 14 December 2014, two years ahead of the originally planned date. Although Abe's popularity has fallen recently, he is seen to win the early election. However, Abe said he would resign in case his coalition did not win a majority, which would mean a rejection of Abenomics.
Abe also decided to delay for 18 months a second sales tax hike from the current 8% to 10% after the first lift in April led the economy shrank for two consecutive quarters. Preliminary data showed GDP of the world's third largest economy shrank 0.4% in the July-September quarter, coming in much worse than the 0.5% growth rate expected by economists. Nevertheless, the recession did not mean Abenomics, the policy of unprecedented monetary easing, stimulus spending and structural reform, was a failure, Abe noted. Abe pledged that the sales tax rise, required to fund swelling social security costs and curtail Japan's massive public debt, would be implemented without fail in April 2017. Abe, who is serving his second term as prime minister after a difficult 2006-2007 term, inherited the sales tax plan from his predecessor based on a ruling-opposition party agreement, in which he played no direct part.
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