Abenomics 2.0, unveiled – Nomura

By FXStreet FXStreet (Guatemala) – Analysts at Nomura offered the outlook for Japan’s Abenomics 2.0.

Key Quotes:

“During November the government decided urgent measures aimed at realizing a society in which all citizens are dynamically engaged, the new Three Arrows, or Abenomics 2.0, of the Abe administration.

Following extensive further discussions, the administration now plans to draw up the Plan to Realize the Dynamic Engagement of All Citizens in May 2016.

This plan is likely to include measures aimed at realizing the new targets of GDP of ¥600trn, a birthrate of 1.8, and no one being forced to leave their job in order to provide nursing care. However, we see it as largely unknown what will be included in the plan on top of the urgent measures. At present, we do not see any particular justification for expecting major surprises.

We would see it as positive if the plan includes raising of the targets for foreigners visiting Japan together with measures to attain the new targets, and further reduction of the corporation tax rate that is currently scheduled to be lowered to 30% and lower, with the aim of reaching the GDP target of ¥600trn. We also think that further expansion of childcare services …read more

Source:: FX Street