Japan’s economy will remain on track as the government prepares a 5 trillion yen ($50.6 billion) stimulus package to offset the drag from a sales tax increase scheduled for next April, a Reuters poll showed.
Economists expect the majority of the stimulus package to be spent on infrastructure and tax breaks for the corporate sector, the poll conducted October 10-15 showed.
It also concluded that Prime Minister Shinzo Abe’s government should take additional steps to ease regulations and encourage new markets for goods and services to lift the country’s potential growth rate.
“Although details of some spending measures will be determined in December, we estimate these fiscal measures will largely offset the negative impact from the consumption tax hike,” Nomura Securities economists said in a note to clients.
“We expect the policy focus to shift to the growth strategy, which the government will start to enact in the next Diet (parliamentary) session that convened on 15 October.”
via Reuters
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.