If the DPJ follows through with its pledges, inflation-adjusted growth in the current fiscal year could fall by 0.2
percentage point to about minus 3%, said Toshihiro Nagahama, senior economist at Dai-Ichi Life Research Institute.
That is because "the party seems to be planning to freeze part of the public works projects underway" to save
money.
Seiji Adachi, senior currency analyst at Deutsche Securities, took a more cautious tone.
He said that if the DPJ goes ahead to reduce existing tax exemptions to enable more public spending, middle-aged or
older people may suffer declines in household income, even as lower-income families benefit from income redistribution. "The overall impact would be limited or perhaps negative on a net-basis," Mr. Adachi said.
percentage point to about minus 3%, said Toshihiro Nagahama, senior economist at Dai-Ichi Life Research Institute.
That is because "the party seems to be planning to freeze part of the public works projects underway" to save
money.
Seiji Adachi, senior currency analyst at Deutsche Securities, took a more cautious tone.
He said that if the DPJ goes ahead to reduce existing tax exemptions to enable more public spending, middle-aged or
older people may suffer declines in household income, even as lower-income families benefit from income redistribution. "The overall impact would be limited or perhaps negative on a net-basis," Mr. Adachi said.
