Japan Government Sets 3 Years for Investment Period

The government decided Wednesday to designate the coming three years as an “intensive investment prompting period” to accelerate its economic growth strategy aimed at conquering nearly two decades of Japan’s deflationary recession.

In the outline of the strategy, presented by economic and fiscal policy minister Akira Amari earlier in the day, the government also positioned the next five years as an “emergency structural reform period,” pledging to bring about industrial reorganization by taking such measures as promoting labor market flexibility.

After a meeting of the industrial competitiveness council, which has been discussing the strategy, Amari told reporters that Prime Minister Shinzo Abe’s administration will present a rough draft of the strategy at the next gathering of the panel, scheduled to be held next week.

The growth strategy, one of the “three arrows” of Abe’s economic policies dubbed “Abenomics” along with drastic monetary easing and massive fiscal spending, will be adopted by the Cabinet in mid-June, with the aim of activating the economy through private investment and achieving wage hikes and higher employment.

Amari said the strategy has been “80 percent” completed, but he added the government “will continue to discuss some areas,” including agriculture and employment rules, as private sector members of the panel, such as academics and company executives, have called for more sweeping deregulation.

via Mainichi

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza