The latest data shows that Japan has managed seven straight quarters of economic growth. The world’s third largest economy seems to be holding on its own despite global economic pressures. The policies prime minister Abe, often called Abenomics, has favored depreciation of yen, which has in turn fueled for exporters and the economy.
Post 2008 bailouts, the abenomics has synced perfectly with the recovery in world economy. Japan’s GDP has increased 1.4 percent in annualized terms in the three months through September. The economy has been expanding since the start of 2016, the longest streak of growth since one that began in 1999.
Consumer prices have been declining in Japan since the 1990s, The deflatory pressures took out fizz out of all investments leading to an overall economic slowdown. Abe focused on getting the investments back into the picture with his stimulus program. That weakened the yen, making Japanese cars, electronics and other exports to foreign buyers.
Japan’s consumer price index has been rising this year – it increased 0.7 percent in September from a year earlier for the ninth straight monthly increase. This may signal that Abenomics was on right path and deflation is about to be overcome.
However challenges remain. The recent hits to Japanese quality perceptions in Kobe Steel and other car manufacturers may hit ability of Japanese firms to compete in global markets. The region security with Nuclear North Korea and an aggressive China is another reason for worry. But for now Japanese electorate can congratulate themselves for bringing Abe back for another term