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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%.