Abstract: Five years after the implementation of “Abenomics”, its effect on economic growth appears. It not only realizes the second longest booming after the Second World War, but also helps the Liberal Democratic Party (LDP) led by Mr. Abe win the general election. However, due to sluggish business investment in equipment, poor earnings, falling unemployment but lower wages, working environment degradation and other reasons, the policy failed to achieve the expected goals, thus the “Abenomics” has not contributed to a real growth of the economy. It has led to negative effect due to the contradictory economic policies that lack continuity and the misalignment of policy priorities and economic realities. Under the background of low birth rate and aging society, Mr. Abe’s government must adopt policies and measures to encourage enterprises to improve labor productivity, so as to eliminate the huge fiscal deficits and realize higher wages, higher consumption, and better social security system, thus achieving a real economic growth.

Key words: “Abenomics”, economic growth, labor productivity, misalignment of policy