Abe calls for steps to boost Japan’s domestic demand

13-Nov-2018 Intellasia | Mainichi | 6:00 AM Print This Post

Prime minister Shinzo Abe ordered his Cabinet ministers Monday to make sure that Japan’s domestic demand continues to expand ahead of a consumption tax hike planned in October next year.

“While closely monitoring the economic situation at home and abroad, we will respond properly to sustain the economic recovery trend,” Abe said at a government panel meeting.

Private-sector members of the Council on Economic and Fiscal Policy requested that the government incorporate special measures to expand domestic demand into its draft budget for fiscal 2019 beginning next April, according to officials.

The members also encouraged the government to work toward a continuous raise in the minimum wages of workers and create a growth structure that will not be influenced by global economic risks, the officials said.

Last month, Abe announced the government’s plan to raise the consumption tax to 10 percent from the current 8 percent in October next year as planned, while stressing it will make “all-out efforts and take all measures” to prevent the increase from having a negative impact on the economy.

On Monday, Abe also said it is an “urgent task” to improve Japan’s infrastructure to prevent natural disasters from threatening people’s safety and the country’s economic foundation.

Abe made the remarks at a time when Japan’s economy is forecast to have contracted in the July-September quarter due to the effects of a series of natural disasters during the period. The government is scheduled to release preliminary gross domestic product data for the three months on Wednesday.

Abe said that Japan’s employment and income conditions have been improving, but the government needs to monitor global economic developments.

He also stressed that inducing investment from the private sector is an “important key” to realising sustainable growth.



Category: Japan

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