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Postponing the VAT increase key for economic growth of Japan - BAM

FXStreet (Barcelona) - Marino Valensise, Head of Asset Allocation and Chairman of the Strategic Policy Group at Baring Asset Management comments on the need for the Japanese government to postpone its plan to introduce additional VAT.

Key Quotes

“In Japan, corporate earnings continue to do well. Within the government, a debate is taking place on when to introduce an additional VAT increase (the second time); we are convinced that this will need to be postponed, unless implemented together with tax reforms to ease the burden for the corporate sector.”

“This will be a key decision for the evolution of Japanese economic growth for the next 6-12 months. We will have greater visibility in early December. A positive resolution will open the door for much better growth and corporate profitability.”

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