‘Abenomics’ gets vote of confidence in Japanese elections

Japan’s prime minister and his radical economic polices received an overwhelming vote of confidence in Sunday’s elections.

As widely forecast prime minister Shinzo Abe secured a majority win in the Japanese parliament’s upper house vote.

Since Abe took office in late 2012, he has instigated a set of policies dubbed ‘Abenomics’ to pull Japan out of its prolonged period of deflation and drive GDP growth.

So far the signs have been encouraging as the Japanese stock market has surged, with the Nikkei up some 40 per cent in 2013, while the yen has fallen in value, providing a much welcome boost to importers.

The Bank of Japan recently delivered a report, looking at the state of nation which pointed to a wider recovery and expansion in the economy.

In a statement, it said: “With regard to the outlook, Japan’s economy is expected to recover moderately on the back of the resilience in domestic demand and the pick-up in overseas economies.”

Abe’s policies, consist of a three-pronged approach, namely monetary policy, fiscal policy and economic growth strategies. His massive programme of quantitative easing, is pumping some 60trillion yen a year into the economy while one of his key targets is to turn deflation into inflation – with an inflation target set at 2 per cent by 2015.