Japan's Record-Breaking Expansion Struggles to Reach Households

The Japanese economy has been experiencing a prolonged expansionary phase, surpassing the previous record set from February 2002 to February 2008. According to preliminary government statistics, this current expansion has lasted for 74 months through July. During this period, Japan's nominal gross domestic product increased, and corporate profits reached new highs due in part to the yen's sharp depreciation.

However, despite these economic indicators, inflation-adjusted real wages have failed to grow significantly, making it difficult for households to feel the benefits of the expansion. This highlights a crucial challenge facing policymakers as they try to balance growth with rising living costs.