Title: Why is Japan's economy shrinking? | World Economic Forum
Headings: Why is Japan's economy shrinking?
Why is Japan's economy shrinking?
What’s the problem?
What’s causing it?
What is Abenomics?
What does that look like in reality?
So what happens next?
License and Republishing
Written by
Subscribe for updates

Content: That prompted the central bank to push interest rates below zero for the first time ever in an effort to discourage people from buying into yen as a ‘safe haven’. It also hoped that domestic corporations and consumers would be prompted to spend rather than save. So what happens next? Volatility on the Japanese stock market, negative interest rates and now worse than expected GDP figures all serve to pile the pressure on Prime Minister Abe and the viability of his Abenomics programme. Some of the economic gains made since Mr Abe came to power in 2012 have now been reversed and even before the size of the latest economic contraction was known, there was speculation that Abenomics was failing. Of course, Japan is not the only country facing uncertain economic times at the moment but after linking himself so closely to the policies now under strain, Prime Minister Abe is feeling the pressure more acutely than most. License and Republishing
Written by
Keith Breene, , Formative Content
The views expressed in this article are those of the author alone and not the World Economic Forum. UpLink - Take Action for the SDGs
Take action on UpLink
Explore context
Future of Economic Progress
Explore the latest strategic trends, research and analysis
Subscribe for updates
A weekly update of what’s on the Global Agenda