Report by Japan

The Japanese economy has continued to recover moderately since November 2012, on the back of improvements in the employment and income environments. Nominal GDP, real GDP and the GDP deflator in FY2015 grew simultaneously from the previous year for the first time in 18 years. The current administration’s economic policies, "Abenomics," are still at about the halfway point, but progress has been made in reviving economic activities and overcoming deflation as a whole. However, the domestic economy lacks momentum in private consumption and business fixed investment in spite of improving corporate profits, employment and income. Major risks are still attached to the uncertainty over the global economy including emerging economies.