Moody’s on Japan: Beyond 2019, the growth rate will likely remain below potential of 1%

Comments from the ratings agency Moody’s are crossing the wires via Reuters:

• Japan’s cyclical strengths balance structural weaknesses in its credit profile.
• Japan’s implementation of a consumption tax hike planned for October 2019 will aid further fiscal consolidation over the medium term.
• Implementation of consumption tax hike impact will be blunted by offsetting measures to smooth volatility of growth around the tax hike.
• Expects government debt to stabilize near its current level of just above 200% of GDP.
• Beyond 2019, Japan’s growth will likely remain below the potential growth rate of 1%.