Can the Rising Sun Shine Brighter Under Suga’s Leadership?
Japan’s new administration, helmed by Prime Minister Yoshihide Suga, faces a new set of challenges compared with that of the Abe administration. Mr. Suga should do well by focusing on structural reforms to further increase youth employment while balancing the employment needs of urban and rural Japan. While continuing the initiatives of Mr. Abe, the incoming prime minster should also concentrate on policies concerning the labor market that should tackle the immediate demographic challenges of an ageing workforce.
Yoshihide Suga has been elected as the new Japanese prime minister with a comfortable majority and with this a new era has dawned for Japan. Although Shinzo Abe leaves behind a strong legacy of political stability, global statesmanship and Abenomics, Japan’s current weak conditions pose challenges to the new premier. Our earlier article had assessed the legacy of Mr. Abe, the probable candidates for the premier’s post and the challenges that a new prime minister may have to contend with.
In this article, we outline Japan’s macro policy issues and investment returns over the past three decades to provide a perspective on the challenges confronting the new administration.