Capital Economics’s Thieliant Expects Japan’s Economy to Shrink Next Year

The video discusses Japan's fiscal policy, highlighting that recent measures are similar to past practices, with no significant increase in spending. Despite fiscal stimulus efforts, the economy is expected to shrink due to challenges like the sales tax hike and natural disasters. The video suggests that Japan needs to increase spending and implement reforms, such as boosting immigration and labor market flexibility, to stimulate economic growth.

What is the main reason Japan's economic forecasts remain unchanged despite the fiscal stimulus package?

• The package includes significant new spending.

• The package is larger than previous years.

• The package is mostly previously announced spending.

• The government is reducing spending levels.

What is one suggested method to stimulate Japan's economy according to the second section?

• Increase public spending.

• Implement new tax hikes.

• Reduce interest rates.

• Decrease public spending.

What is a key challenge Japan faces that requires structural reform?

• High levels of immigration.

• Aging population.

• Excessive GDP growth.

• Surplus in the labor market.

What is one of the reforms suggested to address Japan's aging population?

• Increase tax rates.

• Decrease public spending.

• Reduce immigration.

• Introduce flexible labor market policies.

What is the current impact of Japan's new visa type for low-skilled workers?

• It has had very limited uptake due to stringent requirements.

• It has offset the annual shrinkage in the working-age population.

• It has significantly increased immigration.

• It has decreased the need for labor market reforms.