Japan’s Economy: Reforms and Growth Strategies

The article analyzes features of Japan’s economic development. The authors identified problems that led to a long period of stagnation and did not allow the economy to grow. Thus, in the context of globalization and digitalization, the export-oriented model of the Japanese economy with the dominant role of the state and a rigid corporate structure did not provide a quick and adequate response to new challenges of the global competitive environment. The return on capital and labor has decreased. There was a shortage in the labor market within the country due to the aging population, decreasing birth rate, traditions of the Japanese family (women leaving the labor market after marriage), strict migration policy, etc. The study also reveals main directions of reforms at the present stage and their impact on the Japanese economy. The results of reforms are evaluated ambiguously. The growth of domestic demand could not be achieved due to the high savings rate and a two-stage increase in the consumer tax rate. However, the labor market has been expanded by increasing the employment of women and citizens over 65 years old and slightly easing the norms of migration policy. In addition, foreign economic policy has been liberalized. The authors also defined growth strategies of the Japanese economy at the present stage. The exogenous shocks of recent years have partially offset the positive results of the reforms. However, such areas as the change of business models (to the B2B format), transition to carbon-free technologies, development of the tourism industry, active use of artificial intelligence in all areas, etc. contribute to the growth of the Japanese economy and form the basis of the economic development strategy implemented by the current government