The nation¡¯s economy is likely to stop expanding this year and into next with the Sino-U.S. trade war and a planned sales tax hike expected to crimp activity, a Reuters poll of Japanese companies found, with most calling for fresh stimulus to prop up growth.

The gloomy outlook suggests that Prime Minister Shinzo Abe¡¯s reflationary policy mix, known as Abenomics, is sputtering.

¡°A combination of the U.S.-China trade friction and the tax hike in October will almost certainly tip Japan into recession,¡± an electric machinery-maker wrote in the monthly survey.