The latest survey of Japan’s households shows the stark failure of Abenomics to boost household wealth through asset price growth. As the ruling Liberal Democrats choose a new leader, the party will need to consider why monetary easing has failed to reflate wealth and, alongside stagnant wages, consumption.
What you will learn:
- According to the survey, from 2014 to 2019, average household wealth in Japan fell by 3.5%. Only the top 10% wealthiest households enjoyed an increase – their net wealth grew 8.2%.
- Real estate, which dominates household wealth, rose by 3.5% on average. But only the wealthiest 20% enjoyed growth, highlighting the polarisation between prices for expensive properties and the rest as demographics and investment drove demand for luxury residencies in cities, especially apartments.
- Financial assets declined for nearly all households, amid diminishing disposable income.