Prime Minister Shinzo Abe announced on Tuesday a delay in a second sales tax hike a day after Japan stunned economists when the country unexpectedly fell into recession. Abe also called for a snap election in a bid to get the public to back his "Abenomics" package of economic reforms. The move comes after the Bank of Japan surprised the global financial markets in October by expanding its massive stimulus program with more quantitative easing in an effort to reenergize struggling economy.
The world's third-largest economy is facing two problems: An imminent sales tax hike in the short-term, and with fewer young people than old, the nation has an aging population that is a drag on economic growth.
Jessica Menton | IBTimes