Japan Prime Minister Shinzo Abe’s revamped economic growth strategy unveiled on Tuesday fell short of its hype, failing to provide critical details on how the proposed reforms would be employed.
“We were provided with the reform path but we’re still light on an implementation timeline, so it’ll be a case of wait-and-see for the detailed implementation and how that might unfold,” Matthew Hegarty, equities analyst at Perennial International told CNBC on Wednesday.
Structural reforms, the “third arrow” in Abe’s radical strategy to revive the economy or Abenomics, are seen as critical for putting Asia’s second largest economy on a sustainable growth path. However, unlike the first two “arrows” of monetary stimulus and fiscal spending, the third arrow has yet to be deployed in earnest.
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