"For Abenomics to succeed, Japanese
households will need to reverse the recent deflationary trend of excess saving
and encourage consumers to spend more. In the infographic, Mads Koefed, Head of
Macro Strategy at Saxo Bank, suggests that ‘the new experiment in Japan has
boosted consumer sentiment and that has now resulted in consumers spending more
of their money’. Will a more optimistic outlook translate into a revival for
the world’s third largest economy? It is premature to gauge the success of
Abenomics at this stage, and there are question marks over the proposed
structural reforms. Fears remain over Japan’s alarming national debt, and an
eventual rise in interest rates would add a greater burden on the government,
undercutting reform measures. Will an offshoot of Abe’s remedies to Japan’s
macroeconomic problems inflict a greater debt load?"
