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Pinched pensions limit chances of demand-led recovery in Japan

Spending by households where no one was employed, which includes pensioners, falls 1.5% last fiscal year

It's been bad for several years, especially fiscal 2014, when pensions fell in real terms by 3.8%, after a 2.5% fall in 2013.


WHILE Japan's stimulus policies are beginning to have some effect, with more people beginning to spend, pensioners, a big and growing category of consumers, are clinging on to their cash, limiting the chances of a demand-led recovery.

Consumption, which as in many developed