‘Abenomics’ policies struggle as Japan slips into its fourth technical recession in five years

Japan slipped into its fourth technical recession in five years between July and September, spotlighting how ‘Abenomics’ policies by the government have struggled to drag the economy out of chronic stagnation.

Official data yesterday showed the third-largest economy in the world shrank an annual 0.8% in July to September after a 0.7% contraction in the prior quarter, putting it firmly into recession, two consecutive quarters of declines.

Yesterday’s data highlights the need, analysts say, for structural reform aimed at breaking through supply-side constraints including labour shortages in a fast-ageing society, which suffered from chronic deflation for more than 15 years.