Japan firms baulk at pay rise, inflation below BoJ goal


A pedestrian walks in front of the Bank of Japan headquarters (rear) in Tokyo on Dec 20, 2013.A Reuters poll of econommists suggest that companies are unlikely to raise wages of workers, posing a challenge to Abe's economic plan to revitalise Japan - AFP Photo.

TOKYO: Japanese companies are unlikely to raise wages significantly this year and inflation will be well below the official target, economists said in a Reuters poll, suggesting tough challenges for Prime Minister Shinzo Abe's drive to end years of falling prices and generate robust growth.

The forecasts bolster the view that, with a few high-profile exceptions, businesses are cautious about passing on higher profits to employees, which is seen as vital to Abe's hopes for sustained growth in the world's third-biggest economy.

Start your ads-free experience now!

Monthly Plan

RM13.90/month

Annual Plan

RM12.33/month

Billed as RM148.00/year

1 month

Free Trial

For new subscribers only


Cancel anytime. No ads. Auto-renewal. Unlimited access to the web and app. Personalised features. Members rewards.
Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Japan , economy , abenomics , wages , inflation

   

Next In Business News

Sunview secures large scale solar project from Uzbekistan
Ringgit further strengthens versus US dollar at the close
Leon Fuat shareholders approve final dividend payout
FTSE4Good Bursa Malaysia Index sees 12 new inclusions
Solarvest buys office and retail space for RM48.73mil
Malaysia keeps inflation outlook for 2024 after diesel subsidy reforms
BNM to revamp its fund for SMEs deployment
Cabnet Holdings unit bags RM46mil sub-contract works
FBM KLCI pares gains, ends marginally up
SC appoints Mohammad Faiz Azmi as new executive chairman effective June 16

Others Also Read