Japan’s Q4 Growth Boosted By Pre-Tax-Hike Shopping

Japan’s economic growth is expected to have quickened at the end of last year as consumers ramped up spending ahead of a planned sales tax hike, but analysts say that Tokyo may have to inject fresh stimulus to brighten the outlook.

Lukewarm exports and wages growth have undercut some of the economic gains of the past year, and recent turmoil in emerging markets have also raised worries that Japanese shipments may fail to pick up the pace.

The median from a Reuters poll of 26 economists forecast Japan’s economy to have grown 0.7 percent in the October-December quarter from the previous three months.

That would be faster than a 0.3 percent expansion June-September and mark the fifth consecutive quarter of growth. The median translates into an annualized increase of 2.8 percent. The Cabinet Office will release the data on Monday.

via Reuters

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