A large-scale plan of recovering Japan’s economic growth rates called Abenomics did not improve the situation. The government launched several stimulus programs, all at once, and strongly supported a few spheres, but these efforts did not boost the economy. Unemployment began to rise and household spending shrank. Meanwhile, many indicators came out much worse than expected. For instance, retail sales tumbled by 1% against the forecasts of a 0.6% drop.
Industrial production also experiences bad times despite some signs of revival in exports, which arouse hope for a change. Nevertheless, consumption is too sluggish to stimulate economic recovery.
However, the weak yen underpinned prices for imported foods and home appliances. It was the first increase in five months. Still, the country’s inflation is way too far from the 2% level targeted by the Bank of Japan. The economy fails to enter the cycle when wages’ growth encourages consumers to raise spending, thus resulting in a rise in salaries. The Japanese government starts the new year with the same aim - to revive the economy that still lacks signs of stable growth.
