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Impact of tax hike on consumption set to remain small

Private consumption growth in Q3 was much weaker than ahead of the 1997 and 2014 sales tax hikes. While that’s partly because underlying consumer demand is subdued, the muted spending rush on durables ahead of the October tax hike reduces the chances of a severe slump in consumption this quarter. Meanwhile, the immigration agency revealed this week that uptake for its new working visa has been disappointing so far.

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