Japanese household assets increased 1.3% to a record ¥3.07 quadrillion ($27 trillion) at the end of 2020 from a year earlier, the Cabinet Office said Monday, reflecting consumers holding off on spending amid the uncertain impact of the coronavirus pandemic on the economic outlook.
The rise to the highest level since 1994 when comparative data became available was also helped by ¥100,000 government handouts to all citizens as part of an economic package aimed at cushioning the fallout from the virus crisis.
Some economists had said the blanket cash handout would spur spending only by those in need of financial aid for their living, and those not in such a situation would sock the cash away.
The Japanese government declared a state of emergency over the virus for the first time in April 2020 covering Tokyo, Osaka and five other prefectures. The measure was introduced in all the 47 prefectures later, requesting people avoid nonessential outings and some businesses close or shorten hours.
Assets held in cash, deposits and stocks increased 2.4% to ¥1.93 quadrillion, while nonfinancial assets including land and fixed assets decreased 0.5% to ¥1.14 quadrillion, according to data from the Cabinet Office.
Japan's net worth, the value of total assets, including those of the government, corporations and financial institutions, minus debt, decreased for the first time in five years with a 0.3% fall to ¥3.67 quadrillion. Of the net worth, fixed assets shrank for the first time in eight years as corporate capital spending dropped due to the pandemic.
Combined net assets of the central and local governments sagged 26.5% to ¥71.7 trillion, reflecting a rise in Japanese government bonds issuance.