Thread by @YMehta_

Last week we lost #ShinzoAbe who was the former Prime Minister of #Japan 🇯🇵 and also a close friend of #India.

A book written on #ABENOMICS which talks about the Abe's Economic Legacy in Japan.

So let's decode what were the policies and what were its implication on Japan.

Shinzo Ab was a Japanese Politician who served as Prime Minister of Japan from 2006 to 2007 and from 2012 to 2022. He was the longest serving prime minister in Japanese history.

Economic policies set out by him, and his parties in 2012 helped in shaping the Japanese economy.

What is ABENOMICS?

Abenomics is the nickname for the economic policies set out for Japan in 2012, when Prime Minister Shinzo Abe came into power for a second time.

Abenomics was promoted as a way to shake Japan's economy out of a period of minimal growth and overall deflation. Japan's economic troubles dated back to the 90s.

Abenomics consisted of three arrows. They are:

➡️Printing Additional Currency- Between 60 to 70 Trillion Yen ¥- to make Japanese exports more attractive and generate modest inflation- roughly 2%.

➡️New Government Spending Programs to stimulate demand and consumption- to stimulate short-term growth and to achieve a budget surplus over the long term.

➡️A reform of various regulations to make Japanese Industries more competitive and to encourage investment in and from the Private Sector.

The Third Arrow of Abenomics included corporate governance reform, easing of restrictions on hiring foreign staff in special economic zones, making it easier for companies to fire ineffective workers, liberalizing the health sector and implementing measures that help domestic and

foreign entrepreneurs.
The proposed legislation also aimed to restructure the utility and pharmaceutical industries and modernize the agricultural sector.

Now an important question did Abenomics Work?

Abenomics has worked well at times and stalled at others. Inflation targets have been met and Japan's unemployment rate is more than 2% lower than when Abe came to power for the second time.

Similarly, nominal GDP has increased and corporate pre-tax profit and tax revenues have both seen significant rises.

However, Japan's period of success has been halted at times by Global Economic Forces and the country's most significant economic problem - a rapidly aging population - has increasingly taken the forefront.

I hope this #Thread 🧵on Abenomics was helpful.

Reference: Abenomics Book and Google.

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