BoJ’s Iwata upbeat on economy

Shipping containers are loaded onto an international freighter from trucks at the international cargo terminal in Tokyo. Japan's economy shrank an annualised 7.1% in April-June from the previous quarter. - AFP

KANAZAWA: Bank of Japan (BoJ) deputy governor Kikuo Iwata reiterated policymakers’ conviction that the economy can recover from a deep slump, saying that households and companies will boost spending as the pain from an April sales tax hike eases.

Iwata acknowledged that weak exports and the rising burden on households from the tax hike were among risks to the outlook, but said a pick-up in global demand and wages would keep the world’s third-largest economy on track for a moderate recovery.