Decades of almost no growth and heavy government spending to support the economy has left Japan with the highest public debt in the world, at close to two and a half times the size of its economy and more than double that of industrialised countries. It makes the third arrow of structural reform critical, since only by removing anachronistic regulations and freeing companies to compete domestically and internationally can the country enjoy sustainable growth. It was precisely debt concerns that obliged Mr Abe to push ahead with the first consumption-tax hike despite the fact that it conflicts with his economic programme.
Posted on: Tue, 30 Dec 2014 02:38:56 +0000