Japan’s economy has been on a solid recovery trend in 2013 thanks to improving domestic and foreign demand． Favorable short-term effects of Abenomics have materialized gradually in both the financial market and the real economy． Although the Abe administration has launched the “Japan Revitalization Strategy”, structural problems, including the rising government debt burdens, the inflexible labor market and the inefficient allocation of capital among enterprises, cannot be solved immediately． The negative impact of the 2014 consumption tax hike on the real economic growth may subvert people’s confidence in Abenomics and affect the implementation of structural reform measures． The depreciation of the yen may not continue to play a significant role in stimulating exports, because other countries may take countermeasures． Japan’s real GDP is expected to grow by around 1． 7% in 2013 and is expected to grow around 1． 5% in 2014． <<