Japan Recovery on Track, but Third Arrow Will Take Time To Hit Its Mark

Japan Recovery on Track, but Third Arrow Will Take Time To Hit Its Mark. The election of Shinzo Abe as Japanese prime minister signaled not only a major change for Japan but also for global investors, many of whom had been ignoring the country for years. Since he announced his 'three arrows' strategy, there has been skepticism outside Japan as to whether his third arrow of reform would hit its mark. The first two arrows of monetary easing and fiscal stimulus were fairly easy to effect. It is the third arrow of comprehensive structural reform and deregulation that is the most important, but also the most difficult. In our view, although this arrow will take much longer to hit its mark, Abe is determined to ensure that many of the reforms will be effective and lead to increased long-term growth and an improved outlook for Japan. Full Article: (VIEW LINK)