Japan—Structural reforms buoy growth outlook
Structural reforms are helping to revive growth in an economy that is Australia’s second-largest trading partner.
Japan’s economy has been acutely affected by the world economic slowdown. Among the drags on its performance are the rapidly ageing population (expected
to reduce Japan’s workforce by 20% in the next two decades),
and high government debt (234% of GDP) that could become unsustainable.
The increase in the consumption tax in October 2019 should help support government finances, but will also weigh on domestic spending and the economy.
This article is from the August edition of World Risk Developments. Read the other topics covered on their website exportfinance.gov.au
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