Capital Economics’s Thieliant Expects Japan’s Economy to Shrink Next Year

The video discusses Japan's fiscal policy, highlighting that recent measures are similar to past practices, with no significant increase in spending. Despite fiscal stimulus efforts, the economy is expected to shrink due to challenges like the sales tax hike and natural disasters. The video suggests that Japan needs to increase spending and implement reforms, such as boosting immigration and labor market flexibility, to stimulate economic growth.

What was the outcome of the public spending increase mentioned in the text?

In what ways does the text suggest that Japan's economic policies need to change?