Taking a look at the 3 arrows of Abenomics.
Structural Reforms in Abenomics lead Japanese investors to tax-free savings vehicles.
- The Nippon Individual Savings Account (NISA) is proposed to drive domestic investment and buoy Japan's market
- Capital gains taxes not earned in a NISA account increased from 10 to 20%
- Government officials expected to encourage wealth succession by expanding NISA to include contributions from families
- Abenomics "arrows" yielding economic recovery in all targeted areas of Japan's economy
In January 2014, the "third arrow" of Abenomics was fired. This third element of Shinzō Abe's economic reforms - i.e., structural reforms - came in the form of the Nippon Individual Savings Account, or NISA.
The goal of these tax-free investment accounts is to stimulate Japan's economy through investments from Japanese citizens. A year after the program's introduction, questions of performance and its contribution to Japan's market recovery remain.
The Japanese effort to stimulate the economy, also known as Abenomics, focuses on:
- Fiscal Stimulus
- Monetary Easing
- Structural Reforms
These are the famous "3 arrows" of Abenomics.