"I hope in my capacity as leader of the LDP that we can aim to pass it in the next extraordinary session of the Diet,"
-Shinzo Abe, Japan's Prime Minister
On Tuesday the Cabinet approved Shinzo Abe's third arrow– a set of measures aimed at boosting growth potential of the world's third largest economy. According to official projections, the economy will not be able grow by more than 1% without any reforms. These estimates echoes with forecasts from the IMF that was betting on a less than 1% expansion each year from 2015 through 2017, with a final forecast standing for 2019 at 1.125%.
Currently, Japan's Prime Minister, Shinzo Abe is trying to pass a law in the next Diet session to legalize casinos in attempt to boost tourism before the Olympics in 2020. Allowing casinos to operate within the economy and its integrated resorts is considered to be a key part of Shinzo Abe's growth strategy, which also includes a reduction of the corporate tax rate next fiscal year. A law is likely to be passed without any problems and is expected to provide a significant boost to the tourism sector and economy in general. However, Abe is running out of time, as Japan is poised for a record number of tourists this year, attracted by the easing of visa rules and weaker Yen. Moreover, spending by tourists exceeded outlays by Japanese going to other countries in April for the first time in more than 44 years. While legalization of casinos will not be enough alone to boost growth estimates, it is a clear action plan from the Prime Minister, which draws brighter prospects for Japan's economy.
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