Japanese Prime Minister Shinzo Abe faces a tough decision on whether to hike the consumption tax to 10 percent next year given the nation’s nascent economic recovery, the governor of Tokyo told CNBC on Wednesday.
“The GDP (gross domestic product) figures are going down, [so] it’s a very, very difficult question,” Governor of Tokyo Yoichi Masuzoe said in an interview with CNBC’s Kaori Enjoji.
Japan raised its sales tax to 8 percent from 5 percent in April, a move that’s dragged on the world’s third-largest economy. The economy shrank an annualized 7.1 percent in the second quarter, revised GDP figures showed on Monday.
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