Japan 2016: Slow Economic Growth but an Affluent Society

Japanese economy grew steadily in 2016. However, household consumption remained weak and inflation was far below the 2% target. The Japanese government substantially adjusted both monetary and fiscal policies to support economic growth. Despite a tight labour market, the meagre increase in base salary could not stimulate consumption. However, Japan remains an affluent society, with a large amount of liquid assets and relatively low debts. Japanese overseas assets have risen significantly and is a major source of national income.