Positive outlook for Japan’s economy
After two decades of economic stagnation, Japan’s return to growth has been thwarted by the challenges of an ageing population and debt built up through years of on and off deflation. Despite this, the outlook for the world’s 3rd largest economy is bright.
The decline in commodity prices, the potential for robust growth in exports and the tightening in the labor market should all contribute positively to Japan’s economy. Many of Japan’s major companies especially automotive spare parts industry continue to enjoy improved profits. Many of these companies have also discussed the possibility of a wage increase, which is long overdue.
In 2012, Prime Minister Shinzo Abe announced a series of tax reforms that would stimulate the economy, which included a series of tax hikes. The second tax hike was due to be implemented in April 2017 but has now been postponed until 2019. This postponement should improve the current economic situation and to counter effect other global economic issues.
Tourism has been a major factor in the improvement of the Japanese economy. Chinese spending had been one of the largest driving factors for this. As reported in the Nikkei times, 2016, land prices in Japan rose for the first time in eight years in 2016.