Can Japan’s economic support measures accelerate the recovery and promote structural change?
As we move into the second half of 2020, economies around the world are facing the mammoth task of restoring growth to economies ravaged by the Coronavirus crisis. In Japan, the government has unveiled a large scale economic package that will offer significant support for the economy. This is supplemented by measures implemented by the Bank of Japan aimed at securing business continuity.
Moreover, our economists believe that there is now a real opportunity for Japan to accelerate structural change in the economy. In particular, the current crisis has brought to the fore two themes. The first is the redesign of supply chains for the post-pandemic world; the second is increased digitisation, changing working practices, and the broader adoption and use of IT throughout the economy.