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Priority shift in Japan could alter emphasis of Abenomics

Abe is almost certain to delay raising the sales tax in April 2017, signalling a move towards using fiscal stimulus

Anticipation of a sales tax hike usually triggers consumption in advance of the move, but in Japan, households hoard money ahead of what they expect is a rise in living costs from a higher sales tax, said economist Nouriel Roubini.


IT now appears all but certain that Prime Minister Shinzo Abe will postpone the politically risky move of raising Japan's unpopular consumption tax - and that he will announce this at the Group of Seven (G7) summit hosted by Japan in May.

The move could alter the nature of

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