Japanese Prime Minister Shinzo Abe says his country is winning the battle against deflation, the persistent low prices that have plagued Japan’s economy for years.
“This spring wages will increase, and higher wages will lead to greater consumption,” he told business leaders at the World Economic Forum in Davos, Switzerland, on Wednesday.
“It is not twilight but a new dawn that is breaking over Japan.”
He also said he would take on vested interests and act “like a drill bit” to break down obstacles to restoring the country’s competitiveness and doubling inward investment by 2020.
His turnaround plan for the world’s third largest economy — dubbed Abenomics — has included new spending pledges and an aggressive, expansive monetary policy.
Progress on structural reforms to secure recovery for the aging and heavily-indebted country has been slower. But Abe said he would not let up with initiatives aimed at opening up markets, encouraging innovation and immigration, and transforming Japan’s male-dominated corporate culture.
“Japan must become a place where women shine,” he said, repeating an earlier pledge to ensure 30% of senior positions will be occupied by women by 2020.