FOCUS: Pivot to pre-COVID normalcy tests Japan's fiscal spending appetite

Japan has taken a baby step toward reducing its bloated budget to pre-COVID normal, but fiscal spending pressures on the government may not ease soon.A projected expansion of Japan's nominal gross domestic product beyond 600 trillion yen ($4 trillion) for the first time may mean the Bank of Japan's gradual shift toward policy normalization and higher debt-servicing costs.It is a make-or-break moment for Prime Minister Fumio Kishida because he believes Japan is about to seize a chance to finally break with deflation. He has vowed to extend government support to ensure wage growth, a critical…READ FULL ARTICLE