Japan's longest-serving prime minister, Shinzo Abe, resigned from his post on August 28, citing health reasons. With his resignation, comes an end of his signature economic policy, which was dubbed as Abenomics.
Prime minister Abe unveiled Abenomics, an economic policy package when he came into power in 2012.
His policy focused on three areas: large-scale monetary easing, fiscal spending, and structural reforms.
Was his signature policy successful?
The country's largest and oldest English-language daily newspaper, the Japan Times, reported that his policy has "led the yen to weaken, helping increase corporate earnings and raise stock prices."
"But the Abe government has yet to achieve its target of overcoming the country’s prolonged deflation," it added.
Similarly, Reuters reported that Abe’s structural reforms were hindered by, “low productivity, a rapidly aging population and a rigid labor market.”
It's worth noting that Abe's policy also could not save Japan from falling into a recession for the first time since 2015.
To make matter worse for Abe, ever since the coronavirus pandemic hit Japan, his popularity started diminishing.
In August, Japan’s leading news agency, Kyodo News’ reported that it held an opinion poll that found that 58.4 percent had been discontent with Abe’s handling of the pandemic. His cabinet's approval rating fell to 36 percent this month, which was at 62 percent at the start of his second innings.
Latest Videos From TheStreet and Jim Cramer:
- Coronavirus Update: Abbott's Fast $5 COVID-19 Test Gets FDA Emergency Use Authorization
- Salesforce Earnings Has Investors Really Excited About Software
- Jim Cramer’s Outlook on Oil Ahead of Hurricane Laura
- Big 12 Commissioner Explains Decision to Play College Sports to Jim Cramer
- McDonald’s Looking Into More Cover-Ups Under Former CEO’s Watch