Consumption tax hike leaves credibility at risk

Following a strong Q3 Tankan survey, the Japanese government today confirmed that it will go ahead with the first consumption tax hike next April. However, the decision to offset some of the fiscal benefits with additional stimulus measures means that fiscal consolidation targets may have to be watered down, which leaves credibility at risk.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.
By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.

Already a client or trialist? Log in to read this.