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Japan's Likely Recession Mustn't Stop Tax Hike, Says Panel Chief

Shoppers In Shibuya District As Japan's Economy Continues To Expand
Photographer: Keith Bedford/Bloomberg

China’s slowdown has likely tipped Japan’s economy into recession, though not by enough to justify delaying a sales tax hike, according to the head of a government committee that charts the economic cycle.

The possibility is rising that the economy is already in a recessionary phase, said Hiroshi Yoshikawa, who is also president of Rissho University, in an interview Tuesday. A key index of economic data recently showed the economy was worsening, making an official judgment of a recession highly likely, he said.