The draft government budget for fiscal 2015 paints a positive picture with regard to expectations of more tax revenue but indicates little effort to rein in government spending to restore Japan's financial health.
Worrying signs appear to outweigh the bright spots in the Bank of Japan's latest "tankan" survey. The government-laid scenario of steady recovery in consumer spending after the consumption tax hike in April has not materialized.
While information and communications technologies have increased the conveniences and comforts of life in Japan to an unprecedented level, the nation's economy remains stagnant, partly because of the saturation of the auto market.
Labor shortages in Japan are becoming increasingly problematic amid the current economic recovery, particularly for those sectors where rising wage costs result in lost sales and even bankruptcy — despite rising consumer demand.