Tokyo – (Jiji Press) — The Japanese government has emphasized raising wages as a key element in its economic growth strategy, according to the first draft of its anticipated policies on the economy, public finance, and reform, which was presented on Friday. During a meeting of the Council on Economic and Fiscal Policy, the government highlighted in the draft that Japan’s cost-cutting economic model, which has persisted for three decades, is nearing its end. It pointed out the urgent need to shift towards a model that drives growth by improving individual incomes. The draft stated that achieving wage increases surpassing inflation rates is essential for sustainable economic recovery, and the government will work to create a supportive environment to achieve this goal. The government aims to secure cabinet approval for the new policy by mid-June, making it the first comprehensive economic policy adopted under Prime Minister Shigeru Ishiba, who took office in October of last year. At the meeting, Ishiba stressed balancing immediate risk responses with enhancing long-term growth potential, saying: “We will do our utmost to prepare for immediate risks while boosting the growth potential of Japan’s economy across all regions to ensure a transition to an expansion-oriented economy without returning to deflation.”
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