Japan's economy is expected to have lost all the ground it gained earlier this year during the second quarter as the April consumption tax hike appears to have thrown the fragile recovery off its tracks.
Asia's second-largest economy, which is set to release gross domestic product (GDP) data on Wednesday, shrunk an annualized 7.1 percent in the April to June quarter, according to a Reuters poll, down sharply from a 6.7 percent gain in the previous three months.
"The consumption tax hike that started in April will have a broad-based impact on demand components with consumption, residential investment and capex [capital expenditure] in particular expected to decline sharply," Yoshiro Sato, economist at Credit Agricole wrote in a note.
http://www.cnbc.com/id/101909444?__source=yahoo|finance|headline|headline|story&par=yahoo&doc=101909444#.
Asia's second-largest economy, which is set to release gross domestic product (GDP) data on Wednesday, shrunk an annualized 7.1 percent in the April to June quarter, according to a Reuters poll, down sharply from a 6.7 percent gain in the previous three months.
"The consumption tax hike that started in April will have a broad-based impact on demand components with consumption, residential investment and capex [capital expenditure] in particular expected to decline sharply," Yoshiro Sato, economist at Credit Agricole wrote in a note.
http://www.cnbc.com/id/101909444?__source=yahoo|finance|headline|headline|story&par=yahoo&doc=101909444#.
No comments:
Post a Comment