Japan rolls out a new growth strategy
On Thursday, Japan’s authorities are going to set out a new growth strategy, which has already disappointed many financial experts due to the lack of bold structural reforms aimed at narrowing income disparity and reversing quick population decrease.
Undoubtedly, aggressive structural reforms are crucial to pull this Asian country out of decades of malaise, though economists point out that the errors in Abe’s approach are obvious. Experts keep complaining at the lack of progress after three years of the so-called Abenomics – a radical mix of fiscal and monetary stimulus as well as structural reforms.
Abe's delay of a sales tax lift because of weak consumption as well as the BOJ’s inability to slay deflation hopes notwithstanding resorting to negative interest rates clearly demonstrates that policymakers are currently running out of tools to fix the national economy, currently facing even deep problems of low growth as well as high debt amid aging population.