OECD warns Japan's economy may suffer inflation without wage growth
TOKYO. KAZINFORM Japan's economy may face a slowdown if inflation goes up without wage expansion, the Organization for Economic Cooperation and Development warned Tuesday, cutting its projections for the country's economic growth in 2014.
The Paris-based club of 34 advanced nations said in its biannual report that the world's third-biggest economy would expand 1.2 percent this year, downgraded from its November forecast of 1.5 percent in terms of inflation-adjusted gross domestic product growth, Kyodo reports.
The OECD, meanwhile, urged Prime Minister Shinzo Abe's government to promote structural reforms and raise Japan's consumption tax rate to 10 percent next year as scheduled to attain its goal of restoring the country's precarious fiscal health.