The retail sales in Japan fell in April by 0.8 percent year according to data released today by the Ministry of Economy Japanese underlining the weakness of consumption at a time when the government ponders postpone a rise in VAT.
In turn, industry sales were flat in April compared to March, as disclosed figures.
These numbers provide more arguments with respect to stagnant demand for Japanese Prime Minister Shinzo Abe, who is studying right now delayed tax increase scheduled for next April.
Many Japanese media assume that the prime minister has already made the decision and freeze the measure to prevent flu the main engine of the Japanese economy.
Some analysts also suggest that Abe made the announcement this week despite the apparent difficulties to reach consensus on the measure within his party.
The effects of the "Abenomics" -the program of economic reform Abe- to close nearly two decades of deflation have faded over the months by the fall in oil prices so the prime minister would seek to postpone the tax increase until October 2019, when his term would be about to expire.
Several international organizations have stressed the need for Japan to raise indirect taxes face relieve his bad fiscal health, since its public debt is more than twice its GDP and is the largest among industrialized countries.
No comments:
Post a Comment