TOKYO (AFX-ASIA) - Finance Minister Kiichi Miyazawa said the Japanese economy is set to pull out of its trough but the fiscal burden will not begin to ease until consumption recovers.
His comments follow the release today of fourth quarter GDP data. The economy is "on track to pull out" of its lows, Miyazawa told an upper house budget committee.
"In the October-December GDP data, corporate capital investment has shown strong growth of 6.8 pct from the previous quarter but personal consumption, in contrast, posted negative 0.6 pct growth," Miyazawa said.
"Japan's fiscal burden will not begin to decline unless personal consumption, which accounts for 60 pct of GDP, recovers," he said.