Japanese Election Encourages Fundamental Reexamination of its Economy

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New York, New York - March 22, 2013 - The Japan External Trade Organization (JETRO) Focus Newsletter series provides readers with a snapshot of Japan's macroeconomy, as well as other important topics and trends. It is designed to analyze current developments, including those relating to Japan's economy, its business, financial, investment and political environment, as well as relevant social and cultural themes.

View the March 2013 Newsletter

A summary is presented below:

Japanese Election Encourages Fundamental Reexamination of its Economy:
Last December, Japan's Liberal Democratic Party (LDP) regained power in a new election, following an interlude of almost three and a half years when the nation was governed by the Democratic Party of Japan (DPJ) ...

The Rise of the DPJ and Public Demand for New Ideas and Approaches:
As with any government that has been in power for more than fifty years, a status quo and sense of complacency emerged around the "iron triangle" of business, politicians and bureaucrats that led Japan...

New Determination and Need for Change among LDP and other Leaders:
Although the LDP was able to capitalize on public dissatisfaction with the DPJ, the shocking loss it suffered in 2009, combined with the impact of Fukushima and the narrow victory it achieved ....

"Abenomics" Beginning to Introduce Positive Change and Momentum:
Prime Minister Abe is likely to be judged more for his impact on the economy than any other policy area. He came into power in December after two decades of deflation and economic stagnation burdened...

Monetary Policies Promote More Favorable Business Environment:
Prime Minister Abe's policies have already had a sizeable impact on Japan's exchange rate. The yen, which had been one of the strongest currencies in the world despite weak domestic fundamentals ....

Long-Term Impact of Monetary Policy Less Clear:
While Abe's economic policies have had a positive short-term impact on the economy and stock market, the long-term effects....

Energy is One of the Most Difficult Issues facing Japan:
Japan has been lauded for a diversified energy policy, comprised by stockpiling petroleum, encouraging the use of nuclear, renewables ....

Japan's Evolving Relationship with the United States:
The United States has embarked on a pivot toward Asia, as the Obama Administration is seeking to reallocate resources away from counter-terrorism efforts in the Middle East ...

Japan Demonstrates Relative Strength in an Anemic Global Economic Environment: Because of concerns over domestic debt and sluggish consumer spending, in addition to slowed growth in industrialized economies, Japan must continue to pursue ....

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http://www.jetro.org/jetro_focus_newsletter_march_2013

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For additional information on economic and financial trends in Japan, please contact us at http://www.jetro.org/contact or:

Kenichi Kawamoto Executive Director JETRO New York Office email: kenichi_kawamoto@jetro.go.jp tel. +1-212-997-0416

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