Insight

Economic Focus March 2014

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Sales tax in Japan will rise on 1 April 2014 for the first time since 1997. The 3 percentage point increase will lift sales tax to 8%. As Japan's economy slows, the question is whether this tax hike could push Japan back into recession? The last time sales tax was raised, the economy fell into recession, contracting 4 quarters out of the 6 quarters following the hike in which GDP suffered a 3% fall from peak-to-trough. 

Table of contents

Tables and charts

This report includes the following images and tables:

    Real GDP Growth (Quarter-on-Quarter %)Leading indicators - PMIRetail sales
    Yen real trade weighted indexGross government debt (% of GDP)Demographic structure

What's included

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  • Document

    Economic Focus March 2014

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