Research and analysis

Japan: possible indicators of downside risks

Report on risks, including lagging wages and VAT increase depresses household spending.

• From: Foreign & Commonwealth Office
• Published: 1 September 2014

This publication was withdrawn on 3 August 2016

This publication was archived on 4 July 2016

This article is no longer current. Please refer to Overseas Business Risk – Japan

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Japan: possible indicators of downside risks

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Summary and analysis on downside risks as households remain reluctant to resume spending despite earlier expectations of policy makers and experts. This is due to sluggish wage improvements not matching inflation. Shrinking household real (inflation adjusted) disposable income has encouraged more women to register to rejoin the workforce.

Published 1 September 2014