Japan economy minister calls for fiscal stimulus
Japanese Economy Minister Akira Amari said on Monday that the government should deploy fresh fiscal stimulus to prop up the economy if third-quarter preliminary gross domestic data due on Nov. 17 turns out weak, public broadcaster NHK reported.
Amari also said the stimulus steps should be taken regardless of Prime Minister Shinzo Abe’s decision by year-end on whether to proceed with a second sales tax increase planned for next year aimed at reining in massive public debt.
The comments came days after a shock move by the Bank of Japan to expand its massive monetary stimulus raised speculation that Abe would go ahead with the next tax hike in October, if it were followed by promises of added fiscal steps to offset a tax pain.
Amari, speaking at a seminar, noted some private-sector economic forecasts for July-September are said to be short of an annualised 2 percent, compared with an initial projection of above 4 percent growth, according to NHK.
Speaking to reporters after the seminar, Amari added: “It should not be mistaken that “support” (for the economy) means support for the sales tax hike. I think the prime minister will think of the two as separate matters.”
Abe is expected to make a final decision on the tax hike after revised July-September GDP data is published on Dec. 8.
Source: Reuters-Japan economy minister calls for fiscal stimulus
