Fitch: Japan Consumption Tax Hike from 5.0% to 8.0% will not Derail Recovery
- The rise in Japans consumption tax on 1 April is not expected to derail its economic recovery, according to the March edition of Fitchs APAC Sovereigns Chart of the Month.
- Consumer confidence has dipped ahead of the hike, offsetting the increase recorded since the election of the Liberal Democratic Party-led coalition in December 2012 and the coming of Abenomics. However, a close reading of the evidence around a previous tax increase in 1997 suggests the drop may be short-lived.
- Consumer confidence has dipped ahead of the hike, offsetting the increase recorded since the election of the Liberal Democratic Party-led coalition in December 2012 and the coming of Abenomics. However, a close reading of the evidence around a previous tax increase in 1997 suggests the drop may be short-lived.