Political stability has ensured economic stability in Japan where the elected Prime Minister Shinzo Abe in 2013 outlined his audacious set of economic policies to boost growth and bring about inflation. The use of fiscal expansion, monetary easing and government intervention through structural reforms has shown slight economic improvement in Japan. Moderate growth followed by increase in net trade with low level of unemployment continues to improve the current economic environment of Japan. Productivity is to grow by 2.2% by 2020 and the movements in bonds and the currency market japan is perceived as a safe haven by investors in times of economic conflicts in the world.

Despite the world’s largest debt to GDP ratio followed by the slow domestic growth due its decade long deflation, Japan is considered a safe-have given its current account surplus, low level of unemployment and strong Japanese Yen as a direct result of net trade. Political stability in Japan despite current trade conflicts around the world has given investors and consumers cheaper alternatives to exports goods and services with higher purchasing power due to the undervalued JPY. While it is expected for the value of the JPY to drop against the USD in the long run, Japans’ lenience in monetary policy and boost fiscal policies to promote domestic growth and improve inflation will ensure future economic opportunities and prosperity for the domestic and foreign companies.