The Business Times

Recovery due to stimulus, not Abenomics: IMF official

Wages, corporate investment haven't improved, he says

Published Thu, Feb 13, 2014 · 10:00 PM
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THE success of Abenomics "is not yet assured" and Japan's economic recovery since Prime Minister Shinzo Abe came to power just over a year ago largely reflects official "stimulus", a senior International Monetary Fund (IMF) official said in Tokyo yesterday.

Jerry Schiff, deputy director of the IMF's Asia and Pacific department, made these comments as latest government data revealed a record decline in core machinery orders, a key capital investment indicator.

The visiting IMF team's rather sober assessment of the economy is likely to cause some consternation in Mr Abe's cabinet, as Abenomics' success is viewed as a key factor in maintaining Mr Abe's popularity with voters at a time when other government policies have stoked controversy.

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