Japan’s Abe gets middling marks on his economic performance from analysts

TOKYO: Economists are giving Japanese Prime Minster Shinzo Abe middling marks on his economic accomplishments, a Reuters poll showed, crediting him with boosting female worker participation but giving him a poor score for production revolution.

Asked to grade Abe on a scale from zero to 100, 29 analysts gave him an average score of 58 points, with most clustered between 50 and 70 points. That suggests they believe he’s doing modestly well, making more progress than failing – but not doing an outstanding job, either.

During nearly six years in power, Abe has sought to steer Japan’s economy through a three-pronged policy mix dubbed ‘Abenomics’ of super-loose monetary policy, massive fiscal spending and a growth strategy that includes structural reforms.

Economists were also asked to each pick three areas of success in the September 5 to 13 poll, and “encouraging more women to work” got the most votes from 15 of 29 analysts polled. While more Japanese women have entered the workforce, many are part-timers, and female senior executives are still a rarity, a separate Reuters poll showed.

Analysts also said areas of success were “accepting foreign workers”, with 12 votes, and “promoting economic partnerships”, with 11 votes. Immigration is a delicate subject in Japan, but job shortages have prompted the government to announce plans for new five-year work permit categories for foreign workers in areas such as farming, construction and hotels.

Asked to identify Abe’s most unsuccessful areas, 17 economists chose “production revolution”, 13 picked “revitalisation of rural areas” and eight each selected “strategic economic special zone” and “human resources investment”, the poll showed.

Abe is expected to win an election for leader of his Liberal Democratic Party on September 20, putting him on track to become Japan’s longest-ruling prime minister. If he wins, economists surveyed said his new government needs to focus on “medical, social security reform”, “labour reform” and “productivity growth”.

“It is difficult to proceed with fiscal reconstruction without medical and social security reform,” said Harumi Taguchi, principal economist at IHS Markit.

“Sustainable growth by improving productivity and to ease worries about the future by raising wages are also important to raise consumer spending.” — Reuters’’