New prime minister Kishida’s economic policy agenda refers to many areas, but focuses more on income redistribution to households than on Japan’s growth. We discuss how Japan needs resources before conducting income redistribution and expanding the middle class, and how reinforcing economic growth is the way to get these resources. Unless Kishida changes policy priorities, Japan is likely to return to sub-par growth after the tentative pent-up demand is used up. 

 

This podcast was recorded on October 12, 2021.

This communication is provided for information purposes only. Institutional clients can view the related reports at www.jpmm.com/research/content/GPS-3882103-0, www.jpmm.com/research/content/GPS-3858691-0, and www.jpmm.com/research/content/GPS-3840641-0 for more information; please visit www.jpmm.com/research/disclosures for important disclosures. © 2021 JPMorgan Chase & Co. All rights reserved.