The Japanese government’s efforts to revive the country’s economy proved futile. The situation is only getting worse despite the enormous support measures. Moreover, downbeat economic data does not give cause for optimism.
Last week the Statistics Bureau released its report showing Japan’s jobless rate rose more than expected from 3.1% to 3.3%, its highest level since January. Meanwhile, Japanese retail sales slumped 1% in November, marking the sharpest decline in four years. Industrial production figures paint a sad picture too. Factory output declined substantially over the first three months of the year. All this suggests that a recovery of the Japanese economy is not expected until early 2016.
Economists say the Japanese economy is to contract in October-December amid the current level of household spending. This is quite an alarming sign since companies’ profits generally increase in the run up to Christmas and the New Year.
In conclusion, the hoped-for Abenomics aiming to revive Japanese economic growth proved to be a failed experiment with its poor results even 3 years after the launch.
