Nearly four years into its bid to extricate itself from a low growth and high debt trap, Abenomics risks becoming a “busted flush”, warn economists
by Mehreen Khan
“Shunto” season has failed to grip Japan.
The country’s annual Spring assault on wages seems to have passed with little more than a whimper this year despite being billed as one of the most anticipated economic events in Japan’s recent history.
Translating as “spring wage offensive”, Shunto marks the annual Japanese ritual of wage bargaining between business groups and labour unions.
This year’s negotiations have been preceded by months of feverish lobbying from prime minister Shinzo Abe who has urged the country’s business groups to raise wages and help smash Japan’s deflationary mindset once and for all.