Abenomics Benefiting Other Asian Countries More Than Japan

Japanese Prime Minister Shinzo Abe got an early sign of how his blueprint to revive Japan’s industrial vim and economic vigor was working when two of his country’s biggest car makers unveiled $900 million worth of investments to boost production.

There was one drawback: the new assembly plants and expanded factories announced by Mazda and Honda are not in Japan, but more than 2,000 miles away, in Thailand.

Since taking office last December, Abe’s stimulus efforts have barely dented a slide in private-sector investment at home, but they have done wonders for accelerating Japanese investment elsewhere in Asia.

Capital expenditures in Japan fell 4 percent in the first six months of this year, compared with the same period of 2012. Japanese investment in Asia, meanwhile, rose 22 percent, according to the Japan External Trade Organization, or Jetro.

CNBC

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