Japan: The heavy lifting must start now

Japan's economic performance has been mixed - and vested interests are keeping wages down and the labour market tight, explains Hector Kilpatrick, CIO of Cornelian Asset Managers.

Two years into the radical plan to kick start the moribund economy, Japanese prime minister Shinzo Abe's successes include the weakening of the yen, increased asset prices (the stock market, land prices and housing), a palpable change in corporate governance standards and investor stewardship culture, as well as improved participation of women in the labour force. These advances are important steps towards the sustainable improvement in growth and government finances that are desired. However, they are far from enough to ensure victory - especialy since the news in the third quarter last...