Research Briefing | Sep 16, 2021

Why Abenomics failed to reflate household wealth

Japan | Why Abenomics failed to reflate household wealth

The latest survey of Japan’s households shows the stark failure of Abenomics to boost household wealth through asset price growth. As the ruling Liberal Democrats choose a new leader, the party will need to consider why monetary easing has failed to reflate wealth and, alongside stagnant wages, consumption.

What you will learn:

  • According to the survey, from 2014 to 2019, average household wealth in Japan fell by 3.5%. Only the top 10% wealthiest households enjoyed an increase – their net wealth grew 8.2%.
  • Real estate, which dominates household wealth, rose by 3.5% on average. But only the wealthiest 20% enjoyed growth, highlighting the polarisation between prices for expensive properties and the rest as demographics and investment drove demand for luxury residencies in cities, especially apartments.
  • Financial assets declined for nearly all households, amid diminishing disposable income.
Back to Resource Hub

Related Services

Post

Finland’s growth forecast cut amid weak confidence and soaring inflation

We have lowered our 2022 GDP growth forecast for Finland to 1.5% from 1.7% last month, as weakening confidence further dampens the outlook. We expect inflation to peak higher with a greater passthrough to core prices, squeezing real incomes and denting consumption. Russia has accounted for almost 10% of Finland's goods trade, among the highest in Europe.

Find Out More

Post

Why we see eurozone inflation slowing sharply next year

We have revised our 2022 eurozone inflation forecasts sharply higher, to 6.0%, since the start of the Ukraine war, as energy and food prices began to soar and new supply bottlenecks emerged. That said, we still see inflation decelerating sharply to 1.3% in 2023, putting us below consensus. While we recognise significant risks to our views, inflation should slow to below 2% in H2 2023.

Find Out More