Another 3-year for Mr. Abe

As Shinzo Abe won the election as Liberal Democratic leader, he is on course to win the next 3-year Prime Minister position. After 14 months, he will become Japan’s longest-serving PM in the history. In recent year, the Japanese government shows rare stability and continuity. Shinzo Abe resigned Prime Minister in 2007 unexpectedly, because of his health issues. After that, almost every year Japan had a new Prime Minister until he took the position again in 2012.

In the next three years, Prime Minister Abe will continue to pursue his “Abenomics”[1] and amend constitution for clarifying the status of Japan Self-Defense Force.

On the economic field, Abe proposed quantitative easing centralized monetary policy to fight with the deflation, including targeting 2% annual rate inflation, setting negative interest rates and expansion of public investment. The unemployment rate has had achieved the lowest rate to near 2.8% in more than 20 years [2]. Nikkei index is continuing to growth and try to close 25,000 points again after nearly 30 years.

On the politic field, Prime Minister Shinzo Abe regard the amend article 9 of the Japanese Constitution as the dream of his politic life. Article 9 outlaws war as a method to involve international disputes. Now there is no clear political power can stop his amend constitution plan, which is expected to deliver during his next term. However, amend constitution will trigger referendum. The result could be as dramatic as Brexit.

The challenge is still there that the aging and low birth rate is intensifying in Japan. There is no sign that the tread would be changed in the near feature.

[1] What’s Abenomics?
[2]労働力調査(基本集計) 平成30年(2018年)7月分 (2018年8月31日公表)

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