The Q1 GDP figures overstated the health of the economy and we expect a renewed slowdown in the second quarter. But with domestic demand still rising at a healthy pace and the unemployment rate at the lowest in a generation, we suspect that the government will press ahead with the sales tax hike scheduled for 1st October.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services