In early 2013, after two decades of economic stagnation, Prime Minister Shinzo Abe unveiled a comprehensive economic policy package to sustainably revive the Japanese economy while maintaining fiscal discipline. This program became known as Abenomics. The centerpiece of Abenomics has been the three “policy arrows” targeted ataggressive monetary policy, flexible fiscal policy and growth strategy including structural reform. And now it is gaining speed. This page offers the latest on the reforms being implemented to reach a GDP of 600 trillion yen, including work style reform to raise productivity and increase the workforce in the midst of demographic changes.
Opening Remarks by Prime Minister Shinzo Abe at the Dialogue with the New York based Business and Financial Community of Japan - Cabinet Secretariat
Three things, ladies and gentlemen. Continuity, that is point number 1. More openness, number 2. And changes in our work style, point number 3. Continuity, openness, work style changes. … Read more>
The centerpiece of Abenomics has been the three policy arrows targeted at aggressive monetary policy, flexible fiscal policy and growth strategy including structural reform. Since then, Abenomics has achieved remarkable progress.
GDP/GNI growth rates*2
Nominal GDP grew from 495 to 532 trillion yen*1 between the fiscal years of 2012 and 2015*2
Corporate ordinary proﬁts*3
Annual corporate ordinary profits increased by 20 trillion yen between the fiscal years of 2012 and 2015*3
Jobs to applicants ratio and unemployment rate*4
Unemployment level declined from 4.3% to 3.4% between 2012 and 2015*4
Dependency ratio on
Japanese Government Bonds*5
The level of dependency on government bonds has decreased 12% between 2012 and 2015
- Average exchange rate for November 2016: USD = JPY 108
- Source: Cabinet Office “National Accounts”; “Mid-Year Economic Projection for FY2016”; The Japanese fiscal year starts in April and concludes in March of the following year.
The forecast does not include the economic impact of “Economic Measures for Realizing Investment for the Future”
- Source: Ministry of Finance “Financial Statements Statistics of Corporations by Industry” All industries, all (firm) sizes, Seasonally adjusted figures
- Source: Ministry of Health, Labour and Welfare “Statistics on Employment Referrals for General Workers” Seasonally adjusted figures; Ministry of Internal Affairs and
Communications “Labor force survey”
- Source: Ministry of Finance ”Japan’s Fiscal Condition”
How it works
Engines that keep the positive economic cycle spinning.
Boost productivity by changing work style and diversifying the labor force to cope with the demographic change.
Leads to wage increase and employment, resulting in higher income and a rise in consumption
Implement structural reforms such as deregulation in the agricultural sector and other areas with growth potential, as well as expand international trade.
Leads to the creation of new demand and increased capital investment