Is the Abenomics doing enough?
The Abenomics, or the expansive economic model put in place last year by the Japanese Prime Minister Shinzo Abe to release Japan from decades of decline, stagnation and deflation is paying off. The Japanese stock market has risen 18 % since the beginning of this year, while the best mutual funds of the rising sum made it even 40%. The historical peak has already been touched and now the growth rate has declined, but undoubtedly the reform agenda of Prime Minister Abe continues to enjoy strong support in the world. The sales of Japanese companies (small, medium and large) grew by an average of 8% in 12 months and the operating margins of 35%. Also because the Bank of Japan has provided the stimulus needed to boost the economy: a huge injection of liquidity that has pushed up inflation and lower the value of the yen – whose strength in the past penalized the exports. The Abenomics is the exact opposite of the economic policy advocated by Germany, being founded on monetary stimulus, a plan for spending and structural reforms that move toward the liberalization.
What do you think of this? The stable growth of Japan made a key contribution to the economy of the rest of the globe. Italy has also good prospects to take advantage of the boom, because in the fields of fashion, luxury and tourism ties between the two countries have always been very strong. Another benefit that may result from Italy is a lesson on how the crisis could push to muster the strength to react.
For those wishing to take advantage of the boom in the Nikkei index for investing in funds linked to Japan , the most favored sectors are those who can rely on the strength of exports ( mechanical, pharmaceutical , information technology , precision instruments ) and those who are benefiting from the recovery in confidence and consumption growth (banks , services, trade) .