Business

Abenomics: The objectives and the risks

  • 19 July 2013
  • From the section Business
An investor looking at a stock market board in Japan
Image caption Japanese stocks have surged recently on hopes that Abenomics will revive growth

Shinzo Abe has a mission - that of reviving the Japanese economy, which has been stagnant for two decades.

And in his quest to do so Mr Abe, who won a return to office as Japan's prime minister in December, has launched one of the most aggressive policy moves in Japan's history.

Such has been the scale of his plan, that observers have even named it after him, calling it "Abenomics".

It is based on three key pillars - the "three arrows" of monetary policy, fiscal stimulus and structural reforms - to ensure long-term sustainable growth in the world's third-largest economy,

And with initial surveys indicating a big victory for the ruling coalition - led by his party - in the weekend's upper house elections, he is expected to be able to push his plans with even more assertiveness.

While the markets, investors and Japanese exporters have cheered his moves so far, some have warned of the risks and threats posed by them in the long run.

Image caption Getting consumers and businesses to spend more is key to the success of Abenomics
Image caption Mr Abe plans to boost infrastructure spending to spur a fresh wave of economic growth
Image caption Mr Abe has said that he wants to introduce reforms in key sectors such as agriculture

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