Japanese Economy: Facing the Constraint of an Ageing and Declining Population

Abenomics entered its third year of implementation in 2015 with mixed results. The qualitative and quantitative easing had caused Japanese monetary base to surge to 70% of its nominal gross domestic product. Inflation had turned positive in 2015, but remained far below the 2% target set. Government debt continued to climb. Wage growth was too little to increase household consumption. The positive effects of Abenomics were likely to be counterbalanced by the ageing population.