Since Shinzo Abe became prime minister in late December 2012, Japan’s stagnant economy has started gathering traction, fuelled by an aggressive stimulus program. Labelled “Abenomics”, this involves structural economic reforms, central bank stimulus and more coordination when it comes to government expenditure.
On Sunday, Japan held elections for members of the upper house of the National Diet. Abe’s ruling coalition won a comfortable victory, meaning it now has control over both chambers. This gives the prime minister a green light to press ahead with his new reforms, some of which include giving Japan more responsibility when it comes to international security.
His strategy is aimed at ending 15 years of deflation in Japan by increasing prices. After two decades of pessimism, turmoil and stagnation, things are finally looking up. Back in 2008, five percent of the Japanese public envisioned economic improvement over the course of the following 12 months. This increased to 17 percent in 2011 but skyrocketed to 40 percent in 2013, in the wake of Abe’s election.
Meanwhile, the portion of the Japanese population satisfied with the state of the economy has gone from 13 percent in 2008 to 27 percent in 2013. 33 percent of people are now satisfied with Japan’s direction, an increase of ten percent in comparison to 2008.
Abe’s groundbreaking policies are finally eliminating the long felt mood of pessimism strangling Japan’s economic system. Going forward with a new air of optimism, Japan may be on course for a return to its long lost days of economic glory.