Japan government analysis sees economy closer to vanquishing deflation - RTRS

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.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.