WASHINGTON — According to government reports, and an article by Reuters, the Japanese economy is starting to turn around. Reports surrounding current Prime Minister Shinzo Abe’s economic policies are positive and could help prevent another global recession.
Japan, which has the third-largest economy in the world, saw its consumer spending and manufacturer’s confidence rise for the first time in a while. The leading economists and chief bankers for the country’s economic system will keep policy the same unless the economy regresses.
Japan had recently signed a bilateral trade agreement to stabilize their relationship and counter the emerging threat of China.
Abe took heat for his aggressive economic policy, which dimmed short-term outcomes for the economy but were going to benefit the country in the long-term. Now, it looks like his policies are turning around the country and the economy for the better.
Japan’s major problem was deflation, which is when prices fall to the point that consumers will not buy products because they expect the prices to continue to fall in the near future. BBC noted that Abe’s government is increasing spending and will continue to do so until the effects take a solid foothold in the economy.