Japan has battled economic stagnation since the late 1990s. And the Bank of Japan just ended its negative interest rate policy, marking a historic shift away from an aggressive monetary easing program that was implemented years ago to fight deflation. At the same time, we see Japan’s Nikkei index continue its record-breaking bull run. To understand the implications, we had the opportunity to speak with UBS Chief Japan Economist Masamichi Adachi. According to Mr. Adachi, Japan's economy has faced tough times over the past three decades, however, recent developments, such as a significant rise in wages and the transition from nominal stagnation to growth, signal a potential turnaround.
In addition, Mr. Adachi emphasizes the importance of remaining agile in investment strategies and highlights the significance of artificial intelligence as a driving force for future economic growth, urging international cooperation to manage the world's potential risks.
