1/17/2013

Political clout to restore confidence in Japan's economy and stimulate spending is seen as indispensable to round out actions already taken by the government with its 2012 supplementary budget and a goal of 2% inflation. One likely holdup, however, is the broad perception that a deflationary environment will persist. Meanwhile, the World Bank has nearly halved its growth outlook for Japan's economy to 0.8% this year, largely due to reduced exports to China.

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