It’s time for Japan to become an engine of global economic recovery, said Prime Minister Shinzo Abe as he kicked off his highly anticipated speech addressing how the government plans to drive longer term growth in the world’s third largest economy on Wednesday.
But plans outlined by Abe, ranging from setting up special economic zones to attract investment and raising incomes by 3 percent annually over the next 10 years, weren’t enough to excite equity investors.
After briefly rising 1.25 percent minutes after the speech began, the Nikkei 225 promptly slipped into negative territory, closing down almost 4 percent on Wednesday.
Abe’s economic strategy, dubbed “Abenomics” rests on “three arrows:” monetary and fiscal stimulus to get growth going and long-term structural change to ensure sustainable growth.
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