Japan to Act Swiftly If Economy Slows after Tax Hike
Tokyo, Oct. 10 (Jiji Press)--The Japanese government confirmed Thursday that it will act swiftly, including compiling stimulus measures, if the domestic economy shows signs of slowdown after the recent consumption tax hike.
At a meeting of the Council on Economic and Fiscal Policy, headed by Prime Minister Shinzo Abe, participants reviewed economic trends both at home and abroad following the hike in Japan's consumption tax to 10 pct from 8 pct on Oct. 1.
"It's vital for us to act without delay while carefully examining macroeconomic conditions," Abe said, calling on members of the panel to pay close attention to downside risks in overseas economies and a potential fall in domestic demand after the tax hike.
"If downside risks become evident, we should implement full-fledged measures in a timely manner without hesitation in order to ensure that the Japanese economy is firmly on a growth track," Abe said.
Private-sector members of the council said there are concerns over a slowdown in trade and business investment across the globe. They also urged the government to keep a close eye on consumption trends and the number of foreign tourists to Japan.