Japan's 'Abenomics' feared in trouble as challenges build

Prime Minister Shinzo Abe's plan for Japan's economy to generate self-sustained growth on the back of his three policy "arrows" of massive monetary easing, spending and reform appears to be faltering - but no magic solution is in sight. Abe's aides and advisers are promising to forge ahead with painful structural reforms, while spreading the benefits of "Abenomics" to regional areas and drafting a long-term vision for addressing Japan's shrinking population. Failure could leave Japan's economy stuck in a low-growth mode or worse, unable to begin to curb public debt already more than twice the size of a $5 trillion economy, the biggest burden in the industrialized world. Most voters favor delaying next year's sales tax rise to 10 percent after an initial hike in April to 8 percent from 5 percent dented a fragile recovery.

via Business News http://ift.tt/1rbTnc2