Growth to remain subdued - Capital Economics
Japan Economics

Growth to remain subdued

Japan Economic Outlook
Written by Capital Economics Economist
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Japan’s economy has made a poor start to the year and, with the sales tax hike looming and export demand likely to be subdued, GDP growth will remain well below trend both this year and next. The labour market may therefore soon start to slacken again, bringing inflation closer to zero. However, with the BoJ’s arsenal largely depleted, we don’t expect additional monetary stimulus.