Japan
Article Abstract:
The Japanese economy weakened after taxes were raised from 2nd qtr 1997, and this weakness is cause for concern. Business and consumer confidence have deteriorated following bankruptcies and scandals in financial services companies. A stimulus package was announced in Dec 1997 but this may not be enough. Low levels of consumer confidence mean that much of tax rebates maybe saved. An additional package could lead to a gradual recovery in 1998. Interest rates are not likely to be raised in 1st half 1998.
Publication Name: Barclays Economic Review
Subject: Business, international
ISSN: 0956-5574
Year: 1998
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Japan
Article Abstract:
The Japanese economy reacted to a rise in taxes in April 1997, with consumption increasing before the tax to avoid its impact, and decreasing thereafter. Exports increased in 2nd qtr 1997, helping manufacturers, who are benefiting from a drop in the value of the Japanese yen. It is unclear whether the reaction to the tax will continue in 2nd half 1997 and its impact has continued for longer than expected. Monetary policy is not likely to be tightened while there is uncertainty about economic growth.
Publication Name: Barclays Economic Review
Subject: Business, international
ISSN: 0956-5574
Year: 1997
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Japan
Article Abstract:
The Japanese economy has been hit by tighter fiscal policy which has caused a worse contraction than forecast, and which has lasted longer than expected. Japanese exports have increased the current account surplus which could lead to problems in relations with the US. Interest rates cannot be reduced much further to tackle the problem, and fiscal policy has to take into account the problem of the public sector deficit. Growth should recover to some 3% in 1998.
Publication Name: Barclays Economic Review
Subject: Business, international
ISSN: 0956-5574
Year: 1997
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Comment about this article or add new information about this topic:
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