A brief article on Goldman Sachs asking how resilient the Japanese economy has been to the sales tax hike.
- GS compares this tax hike to the previous rate increase in 1997
- found that Japanese consumers have cut their shopping far more aggressively this time around
- Goldman estimates that Japan’s economy will shrink at an annualized rate of 6.5% for Q2 (compared to the 1997 tax hike-caused contraction of 3.9%)
- Note, though, that GS is waiting for more data to make a definitive forecast
More detail here (may be gated)