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April 1st, 2014 
FAKE NEWS for the Zionist agenda A Bank of Japan business survey shows the economic outlook for the country’s economy is set to worsen following a recent sales tax increase.
The recent sales tax rise to 8 percent from the previous 5 percent may trigger the largest economic contraction since the March 2011 earthquake and Tsunami which ravaged the Pacific nation’s economy.
The findings counter previous claims by Prime Minister Shinzo Abe’s government saying the economy will weather the tax hike.
The decision is in line with efforts to rein in Japan’s huge national debt. But there are fears that increased tax on goods and services could derail economic recovery and reduce consumer spending.
“The results were somewhat weaker than expected. Companies are cautious about the outlook mainly due to the tax hike and aren’t in the mood to boost capital spending,” media outlets quoted Yoshiki Shinke, chief economist at Dai-ichi Life Research Institute as saying.
Japan’s gross domestic product (GDP) is expected to shrink by 3.5 percent in the next three months with economists expecting a further slowdown.
This comes as recent data show that Japan’s industrial output declined by 2.3 percent in February.
The contraction is in contrast with the nearly four-percent expansion in January.
Premier Abe, who came to power in December 2012, has vowed to revive the economy by unveiling a series of measures, known as Abenomics, to help ensure long-term economic growth for the country.
The measures are mainly based on a monetary policy, fiscal stimulus and structural reforms.
JR/AB
Source Article from http://www.presstv.ir/detail/2014/04/01/356792/tax-hike-hurts-japan-business-mood/
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