Prime Minister Abe vows to support economic growth
Japanese Prime Minister Shinzo Abe on Friday vowed to do all possible steps if unpleasant economic conditions exacerbate amid slowing growth.
The government introduced a rise in the sales tax to 10% from only 8% on Tuesday. But concerns mounted up that higher tax could hamper consumer spending and lead to a recession.
The recent developments have birthed to speculation that the government will boost fiscal spending.
“Achieving economic growth remains my administration’s top priority,” said Prime Minister Abe.
“If downside risks materialize, we will take all possible steps flexibly and without hesitation to ensure the economy is on a growth path,” he added.
Abe’s promise to step up and take necessary actions is in line with the central bank’s efforts of keeping monetary policy steady in September but also implied to cut rates in the end-of-month meeting.
The U.S.-China trade conflicts have affected Japan’s growth as export goods were declined, impacting the manufacturing sector big time.