Scrapping the Tokyo Olympics would inflict further damage on a Japanese economy already teetering on the brink of a double-dip recession, according to economists.
Scrapping the Tokyo Olympics would inflict further damage on a Japanese economy already teetering on the brink of a double-dip recession, according to economists. While Prime Minister Yoshihide Suga insists the games will go ahead, he looks set to extend a virus emergency until the middle of June, barely a month before the Olympics are due to start. Analysts factoring in a longer emergency now see a larger chance of Japan suffering a second straight quarterly contraction. A last-minute ditching of the games on top of an extended emergency would inflict extra pain on the economy, slowing a hoped-for recovery in the summer and knocking back growth this year by as much as 1.7 percentage point, according to Bloomberg Economics’ Yuki Masujima.
Ditched Olympics could wipe out most of Japan s 2021 growth
Yoshiaki Nohara, Bloomberg News VIDEO SIGN OUT
Discover whatâs driving the global economy and what it means for policy makers, businesses, investors and you with The New Economy Daily. Sign up here.
Scrapping the Tokyo Olympics would inflict further damage on a Japanese economy already teetering on the brink of a double-dip recession, according to economists.
While Prime Minister Yoshihide Suga insists the games will go ahead, he looks set to extend a virus emergency until the middle of June, barely a month before the Olympics are due to start. Analysts factoring in a longer emergency now see a larger chance of Japan suffering a second straight quarterly contraction.
Cellphone fee cuts to weigh on BOJ’s price forecast - sources Impact of lower fees likely transitory, won’t affect policy Price trend stripping away one-off factors ‘solid’ - sources Analysts expect fee cuts to shave up to 0.6% point off core CPI BOJ to mull impact of fee cut in April quarterly f’cast review
TOKYO, April 16 (Reuters) - The Bank of Japan’s new price forecast due later this month will likely come under significant downward pressure due to cuts in cellphone charges, sources said, adding to doubts about when it will achieve its elusive 2% inflation target.
Such renewed weakness in prices would contrast with recent rises in U.S. inflation that is complicating the Federal Reserve’s communication with financial markets, and add pressure on the BOJ to maintain its massive stimulus for years to come, analysts say.
The Bank of Japan's new price forecast due later this month will likely come under significant downward pressure due to cuts in cellphone charges, sources said, adding to doubts about when it will achieve its elusive 2% inflation target.