Politics

UBS Warns of 'Abegeddon'

Economic policies of Japanese Prime Minister Shinzo Abe has some worried about stagflation

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Japan risks facing stagflation—where accelerating inflation is not met by higher growth rates—if "Abenomics" fails to restore momentum in the world's third largest economy, warned Alex Friedman, global chief investment officer at UBS Wealth Management.

"It's possible we could see a stagflation scenario, where you see inflation in asset prices but no real growth. The ultimate story is you need a hand off to real growth—in Japan there's a real question of whether that's possible," Friedman told CNBC Asia's "Squawk Box" on Wednesday.