According to the latest Reuters monthly business survey, Japanese companies boil down the economic challenges to two points: first, the uncertainty of global economic growth poses downward pressure on the Japanese economy; and second, the rising consumption tax rate from this month will hit consumption and then drag down growth.
Fifty-eight percent of respondents believed that Japans economic growth would stabilize or gradually decline; 41 percent believed that Japan would fall into recession. Fifty-six percent of companies expecting a recession believe it will last for more than a year.
69% of enterprises believe that raising the consumption tax rate is not conducive to stimulating the economy and will affect growth.
According to the survey, business resistance to further easing of the Central Bank of Japan has faded dramatically due to worries about economic prospects, with the opposition rate dropping from 88% in July to 57%. (Xu Chao)