Japan's Economy Escapes From 'a Weak Boom'

Changmin Lee

changminlee@hufs.ac.kr​

Professor at Hankook University of Foreign Studies

In 2023, the Japanese economy was characterized by a distinct up-and-down pattern, with positive growth in the first half of the year and negative growth in the second half. The Abenomics economy is characterized by a "weak boom" in which businesses are booming but households are in recession, but recently, cracks have begun to appear in this "a Weak Boom" structure as an increase in domestic investment by businesses and wage growth is observed. The environment surrounding companies has changed, as they have benefited from the rebound effects of the U.S.-China strategic competition, and government-led institutional improvements, leading to increased domestic investment and rising stock prices. These differences in the business environment must be taken into account when referring to Japan's success.