ABEnomics looks to be failing.

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three-arrows

Abenomics launched in December 2012 and it is coming to 4 years soon since the launch. Let us see how how is it performing. All together there are 3 arrows.

a) To increase inflation

b) To ignite dampen economy via fiscal policy

c) Create condition for longer term growth and improve corporate competitiveness.

So far what we here are the results:

a) In March, the year on year bank lending growth slowed to 2.0% as loans growth from major banks moderated.

b) Domestic corporate goods price index dropped to -3.8% which means excess supply than demand. So we can forget about inflation.

c) M2 (Money supply) stayed at 3.2% which it has done so far the past 3 months.

Screenshot at Apr 28 17-39-47

With M2 increasing to 923096.30 Billion Yen in March, up 120000 Billion Yen from 2012 and recent March inflation data dropping to -0.1% shows Abe needs new policies to stimulate the Japanese?economy.

inflation