is stepping down with much unfinished business in reviving the world's third-largest economy — leaving his successor to pick up the slack.. But his signature economic strategy — a range of stimulus policies known as Abenomics — will likely survive not in the least because his close aide, Chief Cabinet Secretary Yoshihide Suga, has emerged as a front-runner to be Japan's next prime minister.
Suga has said he would "maintain and push forward" with Abenomics, which involve large-scale monetary policy easing, fiscal spending and structural reforms. But even if an Abe critic takes office, analysts said theThe track record of Abenomics is mixed at best.That will give investors the peace of mind that stability will persist in Japan.
"From the perspective of markets, investors are looking for stability, continuity," Kathy Matsui, vice chair and chief Japan strategist at Goldman Sachs, told CNBC's"Japan's political history is marred by this rapid turnstile of leaders," she said. "The biggest fear ... is to go back to that pattern of constant change at the top because when you have that turnover, obviously it's much more difficult to implement, especially, much needed structural reforms.
But "the track record of Abenomics is mixed at best," said Josh Lipsky, director of the global business and economics program at think tank Atlantic Council. He explained in a note last week that while Japan did grow, some policy goals were not achieved.Abe came into office in late 2012 with grand plans to lift Japan's economy out of decades of stagnation.
"Abenomics did create growth and avoided the worst case-scenarios for Japanese economy," said Lipsky.forecasting a 5.8% contraction in Japan's gross domestic product this year.
No that's not right, japan economy has other problems based on constitution
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Source: CNBC - 🏆 12. / 72 Read more »