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.
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.