Japanese Prime Minister Shinzo Abe is likely breathing a huge sigh of relief following the conclusion of the Trans-Pacific Partnership (TPP) negotiations earlier this week.
The sweeping free-trade pact, which encompasses 40 percent of the world economy, is expected to shake up Japan’s traditionally insular business world by opening the door to foreign investments and more nimble rivals, analysts say. Abenomics – the leader’s three-pronged economic revival strategy that has lost much of its earlier steam, could thus get a boost.
“After a period in which the promise of Abenomics had been looking tarnished, successful conclusion of the talks is a major achievement for Prime Minister Abe and raises hopes that his ‘Third Arrow’ efforts to raise productivity growth stand some chance of succeeding,” said Marcel Thieliant, economist at Capital Economics.
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