On Wednesday, Reuters obtained a Japanese government analysis to be submitted Thursday by the Cabinet Office to Abe’s top economic advisory panel.
According to the government analysis, the recent optimism surrounding the Japanese economic prospects suggest Japan is breaking out the grip of deflation that has stunted growth for years. The report also says weak wage hikes remain an obstacle to achieving higher growth in Japan.
The draft highlights four factors that suggest deflation is ending: an improvement in the demand-supply gap, record corporate profits, labor shortages and a moderate increase in wholesale prices, Reuters reports.
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