The current potential growth rate of the Japanese economy is estimated to be less than 0.5 percent. Given Japan’s rapidly declining working-age population, it will be critical to increase the labour participation rate of women and elderly people in order to promote economic growth. The ‘new three arrows’ of Abenomics stress the need for Japan to ensure the ‘dynamic engagement of all citizens’ in the economy.
The current potential growth rate of the Japanese economy is estimated to be less than 0.5 percent. Given Japan’s rapidly declining working-age population, it will be critical to increase the labour participation rate of women and elderly people in order to promote economic growth. The ‘new three arrows’ of Abenomics stress the need for Japan to ensure the ‘dynamic engagement of all citizens’ in the economy.