2018 Outlook: Can structural changes lead to sustained growth for Japan?

After years of Abenomics, the Japanese economy and equity market have begun to respond.

Dec 1, 2017 | Daiji Ozawa

The Japanese economy and equity market regained steam in 2017. Nominal GDP, which had stagnated during the deflationary years, has finally picked up in response to Abenomics and has reached a historical high, surpassing the previous peak in 1997. The Nikkei 225 Index coincidentally rose to its highest level since 1996 against the backdrop of solid earnings growth.

This performance was boosted not only by macro factors (notably the yen stabilization effort) but also by restructuring efforts over the two “lost decades” and the unique competitive advantages of Japanese companies. Looking forward to 2018, we would like to highlight three key structural changes we believe will lead to sustained growth in Japan.


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