Japanese Prime Minister Shinzo Abe faces the threat of political - TopicsExpress

Japanese Prime Minister Shinzo Abe faces the threat of political dissent within months as a planned sales-tax rise threatens to arrest an economic rebound. He’ll need a 5 trillion yen ($50 billion) fiscal package to cushion the impact of the increase, the survey showed. GDP rose 4.1% in the first quarter on an annualized basis. Finance Minister Taro Aso said two days ago that the government will make its final call on whether to proceed with the tax increase after the second estimate of second-quarter GDP, which is scheduled for release Sept. 9. The first calculation comes Aug. 12. Aso told Japan’s Group of 20 partners on July 20 that his nation will craft a credible fiscal plan before a G-20 meeting in September. Japanese officials are trying to contain a national debt that the International Monetary Fund projects will reach 245 percent of the economy this year.

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