The Secret Success of Abenomics
TOKYO – Tokyo is in the midst of a construction boom, with old high-rise
office and apartment buildings being rebuilt in more modern and elegant
forms, all while maintaining stringent environmental standards. So
bright is Tokyo’s gleam – which is sure to impress visitors at the 2020
Olympic Games – that the city might seem like an anomaly, given gloomy
reports that, after decades of stagnation, Japan’s GDP growth remains
anemic.
The incompleteness of the official view can be frustrating, especially
as Japanese stocks suffer setbacks, even as Chinese stocks increase,
despite the fact that, unlike Japan, China faces considerable hidden
economic risks. A more comprehensive and accurate representation of
Japan’s economic progress is vital to give investors the confidence that
Japan’s economy merits. That, in turn, would bolster the impact of
Abenomics even further.
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