Output may have contracted again last quarter, but Japan’s growth has actually been fairly healthy by past standards since Mr Abe returned to power, despite stronger demographic headwinds. But the decision to press ahead with the sales tax hike has hampered the Bank of Japan’s efforts to lift inflation, boost nominal GDP growth and put the public finances on a sustainable path. And with limited progress on structural reforms that could boost productivity,Abenomics has not significantly improved the long-run outlook for Japan’s economy.
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