An official from the US-based rating agency, Moody’s Investors Service, expresses his take on the Japanese economy, in the face of the Oct sales tax hike and US-Japan trade deal.
Key Headlines:
Should not expect a similar reduction in consumption as seen in 2014 following the Oct sales tax hike.
Progress in US-Japan bilateral trade relations shields Japan to some extent from risk of imposition of US auto tariffs under Section 232.
Japan’s credit profile is quite resilient to expectation of global cyclical slowdown over next year or so.
Doesn’t see Japanese government meeting its target of reaching a primary balance by 2025 in absence of more concrete measures.
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