Japan’s productivity growth faces two challenges from the labor side: a demographic crunch in which each worker must finance the livelihood of more retirees and an erosion of the skills of the labor due to the rise of non-regular workers to 37% of the labor force.
By one measure, deflation, like the swallows at Capistrano, has returned to Japan. According to the official target of the Bank of Japan (BOJ)—the consumer price index (CPI) except for fresh food—prices fell -0.1% in August from last year. This is the first time Japan has seen deflation since April 2013.
FMI’s review of today’s 15Q2 U.S. Financial Accounts (formerly known as Flow of Funds).
Japan's household spending is rebounding from its post-tax hike bottom, but at a very slow pace and in a zig-zag fashion.