KONTAN.CO.ID - TOKYO. Japan's government downgraded its assessment of the economy on Friday but maintained the view it was recovering, suggesting that escalating U.S.-China trade tensions have yet to hit growth enough to put off this year's scheduled sales tax hike. The fallout from the trade war and slowing global demand have clouded the outlook for the export-reliant economy, keeping alive market expectations that Prime Minister Shinzo Abe may postpone a twice-delayed increase in the sales tax in October. "Japan's economy is recovering at a moderate pace, while weakness in exports and industrial production continues," the government said in a monthly economic report for May.
Japan more downbeat on growth, keeps recovery view in nod to tax hike plan
KONTAN.CO.ID - TOKYO. Japan's government downgraded its assessment of the economy on Friday but maintained the view it was recovering, suggesting that escalating U.S.-China trade tensions have yet to hit growth enough to put off this year's scheduled sales tax hike. The fallout from the trade war and slowing global demand have clouded the outlook for the export-reliant economy, keeping alive market expectations that Prime Minister Shinzo Abe may postpone a twice-delayed increase in the sales tax in October. "Japan's economy is recovering at a moderate pace, while weakness in exports and industrial production continues," the government said in a monthly economic report for May.