JAPAN

摘要

The final release of Q2 GDP (on our deadline) indicated that a solid economic recovery is taking hold, after the preliminary figure of 0.6％ (q-o-q) was revised up to 0.9％. On a y-o-y basis, GDP growth improved to 1.3％ from the previous estimate of 0.9％, reinforcing the case for Prime Minister Abe to go ahead with next year's planned consumption tax hike - a move necessary to cut Japan's soaring public debt. The final GDP release came after the September 5 monetary policy meeting where the Bank of Japan governor signalled his support for the tax increase. He deemed the economy to be "recovering moderately" and hinted at the prospect of further monetary easing should the VAT hike weigh on prices and economic activity.