Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Delay likely in Japan recovery

Peter Torday
Friday 03 December 1993 00:02 GMT
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

THE ORGANISATION for Economic Cooperation and Development forecast yesterday that the Japanese economy could expand by about 1.75 per cent next year, but recent figures and survey evidence from Japan suggest that a recovery is unlikely until late in 1994, writes Peter Torday.

However, the OECD forecast takes no account of any further fiscal stimulus, such as widely expected cuts in income taxes. It expects no growth at all in 1993. The strong yen means the current account surplus is likely to narrow, despite weak imports.

It says income taxes should be cut only if taxes on capital income are raised, widening the tax base. The budget deficit is understated owing to off-budget spending, and a rapidly ageing population means that public debt could 'explode', the organisation warns.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in