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Japan Food and Drink Report Q1 2014

Japan Food and Drink Market: New market analysis published


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2014-04-02 16:00:05 - Japan Food and Drink Report Q1 2014 - a new market research report on companiesandmarkets.com

The outlook for Japan´s food and drink industry remains subdued as the stagnant economy continues to limit the industry´s growth potential. Consumption tax hikes, planned for April 2014, will further weaken the Japanese consumer, while the absence of structural reforms and negative demographic tendencies will weigh on the economy over the longer term.

Prime Minister Shinzo Abe´s combination of ultra-loose monetary policy and higher public spending has bolstered economic growth in 2013. As such, analysts have revised their forecast for Japan´s real GDP growth to 1.8%, from a previous forecast of 1.4%. However, we believe that even this moderate growth rate is unsustainable over the coming years, as the effects of Abe´s monetary and fiscal measures will gradually wane and as

 

 

the government takes action to manage its excessive national debt. As one of the measures to increase its revenues, the government is considering gradually raising the consumption sales tax - from 5% to 10% - by 2015. If passed, the tax increases will put additional pressure on consumer spending power.

Click for report details: www.companiesandmarkets.com/Market/Food-and-Drink/Market-Researc ..

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