Deflation Japan’s economy devours the last 15 years, and inhibits the growth of the country, has gone, and its renewal will be prevented by government measures to support business, said Prime Minister Shinzo Abe.
“Through bold monetary policy, a flexible fiscal policy and strategy of growth, we have reached a new stage of getting rid of deflation,” – he said. Consumption tax was raised for the first time since 1997, and it was “difficult time for the regulation of the economic situation, but I believe that we were able to overcome it,” Abe stressed.
Earlier, the Prime Minister announced a series of economic measures in the framework of the so-called “Third boom” Japan Abenomics.
Japan Abenomics of First boom” of economic policy Abe was “pumping” of the economy with additional liquidity, while the “second” Japan Abenomics supposed to stimulate the economy through budget funds allocated for infrastructure development.
As part of the long-awaited “third boom” Japan Abenomics expected corporate tax breaks. Further details of reforms will follow later this month. Nevertheless, according to a statement on Monday Abe current tax rate for companies in Tokyo 35.64% decline sharply.
According to sources, Kyodo News, the rate drops below 30% for several years with the fiscal 2015, while the Nikkei expects interest rates at “20% over the next few years.”