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BNP On Abenomics: Dissecting the Abenomics...>

JAPAN
JAPAN: BNP On Abenomics: 
Dissecting the Abenomics growth story:
- Under Prime Minister Shinzo Abe's economic policies, annual nominal GDP growth
has averaged 2.2%, boosted by special factors. Growth in real terms has averaged
only 1.4%.
- With limited export growth for much of the period since Q4 2012 and a subdued
recovery in private consumption, construction investment has been Japan's growth
engine.
- Growth in construction spending can be attributed to Abenomics, but Japan's
negative demographic trends cast some doubt on its sustainability, in our view.
- Over the past year and the upturn in the global cycle, exports have expanded
solidly. We expect the recovery to continue as long as the external environment
remains favourable.

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