The Japanese government released their 120 page blueprint for growth on Monday: “Strategy for Reviving Japan”
The Wall Street Journal reports:
- Says the report provides a near-complete picture of Mr. Abe’s growth blueprint, which he is set to present formally in late June
- It includes an increased use of foreign workers, eased working rules for white-collar employees, encourage women into the workforce, and the already much talked about (but short on details as yet) corporate tax cut and changes to the Government Pension Investment Fund
Analyst reactions:
- “Some economists were more subdued, saying the changes were only half-steps”
- Kiichi Murashima, a Citigroup economist: It remains uncertain as to how much the planned corporate tax reform will strengthen Japan’s attractiveness and change domestic and foreign corporate behavior.”
- Robert Feldman of Morgan Stanley MUFG Securities: the new elements “were mostly ambiguities that will make verification of progress a slow and detailed task—just what markets will find disappointing”
There are more details at the (gated) Journal article: Japan Releases Another Plank of Abenomics Aimed at Growth
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The tone of the article is one of disappointment. That’s a bit harsh …. the ‘third arrow’ reforms ain’t gonna come easily. Lots of work still to be done, though.
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ADDED – There’s a non-gated piece at the Nikkei, here: Abe seeking to put Japan on path of ‘sustainable growth’
