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What after Abenomics: Japan's PM exits with economy back at square one

What would become known as Abenomics relied on "three arrows": monetary easing, fiscal policy and regulatory reforms

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Abe’s second sales tax hike in October 2019 turned out to be spectacularly ill-timed.

Yoshiaki Nohara and Enda Curran | Bloomberg

5 min read Last Updated : Aug 28 2020 | 6:42 PM IST

The almost 8-year era of Abenomics draws to a close with Japan’s economy right back at square one.

Prices are flat lining and the deflationary mindset seems as entrenched as ever. Many of the women who entered the labor market under Prime Minister Shinzo Abe’s tenure are losing jobs as Covid-19 batters the economy. Households and companies are in saving mode again amid the pandemic, forcing the government to borrow heavily to cushion demand.

It wasn’t meant to end this way. Abe, who announced on Friday afternoon in Tokyo he would step down due to health problems once his ruling party decides

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