We are re-sending this publication because the previous one contained an error. Mr Abe is now entering his fourth term as Prime Minister.
Fiscal policy will probably be tightened further during PM Abe’s fourth term and the economic expansion is set to lose steam. As such, price pressures will strengthen only slowly and monetary policy tightening remains a distant prospect. We don’t expect the election to provide renewed momentum for structural reform so Japan’s potential growth may return to zero in coming years.
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