Continued anaemia in Japan's economy a concern in govt

CONCERNS are growing that Abenomics may fail to pull the world's third-largest economy out of its prolonged stagnation, despite efforts by the Japanese government and the Bank of Japan (BOJ) to put on a brave face amid adverse economic developments.

Two factors in particular are weighing on sentiment, analysts say. The first is a fear that the impact of the recent consumption tax hike could prove to be more damaging and longer-lasting than expected; the second is the failure of Japanese exports to respond to the weaker yen as positively as hoped.

Both these concerns were voiced openly this week, when the Cabinet Office said in its monthly report - cautiously-worded - that "the Japanese economy remains on a moderate recovery trend" and is "expected to recover".