Rock Bottom: Economy and Labor Shortage

rock bottom: The recent influx of foreign tourists, largely helped by the weakening yen, will likely continue to support the economy in the coming years by propping up retail sales and encouraging investment to capitalize on the tourism boom, while the Bank of Japan's monetary stimulus will keep borrowing costs at rock bottom, according to The Japan Times. However, property sales in Tokyo, a barometer of the underlying tone of the economy, are showing signs of slowing as major developers are delaying projects due to a labor shortage, which raises personnel costs, and shrinking demand as a result of weak wage growth. But because the economy still faces uncertainty, all that glitters may not be gold. Foreign tourists have been flocking to Japan in recent years, topping 20 million for the first 10 months of 2016 compared with 19.74 million the previous year, which was itself a record, according to the Japan Tourism Agency. But the tourism boom also reflects the benefits of the yen's fall. The figures followed government efforts, including easing visa rules and expanding tax exemption for shopping by foreign visitors. (news.financializer.com). As reported in the news.