Business / Economy

Economy probably slowed more than expected in second quarter, Amari says

Kyodo

Economic and fiscal policy minister Akira Amari said Sunday he thinks the economy’s pace in the July-September quarter will be “slower than expected.”

But the government should closely look into economic trends because it cannot be said at the moment whether the government will complete the doubling of the consumption tax to 10 percent next year as planned, Amari claimed on NHK.

The government expected private spending to pick up during the summer, but weather factors, including a typhoon and heavy rain, “unluckily lowered” consumption, he said.

Amari said the economy is on the path to recovery and that the government will see to what extent the slowdown after the April tax hike to 8 percent has been overcome and how strong the recovery is.