14:26 | 13/11/2018 Global Economy
Japanese Prime Minister Shinzo Abe on November 12 highlighted the need for the country's domestic demand to continue to expand as the government starts rolling out measures to cushion the potential economic shock of a consumption tax hike planned in October next year.
|People at Japanese glocery store in Tokyo, Japan - Photo: Alamy Stock|
"While closely monitoring the economic situation at home and abroad, we will respond properly to sustain the economic recovery trend," Abe was quoted as saying at a government panel meeting.
Officials said that special measures to expand domestic demand have been requested to be put into its draft budget for fiscal 2019 beginning next April by private-sector members of the Council on Economic and Fiscal Policy.
The private-sector members also urged the government to pursue economic growth that will not be effected by external factors and global economic downturns while encouraging the government to continue to increase the nation's minimum wages.
Abe also said November 12 that it was an "urgent task" to develop better infrastructure to protect against natural disasters and minimize losses to the nation's economy when they occur.
Due to the costs related to a string of natural disasters recently, Japan's economy is forecast to have contracted in the July-September quarter.
Abe also said that an "important key" to realizing sustainable growth was garnering more investment from the private sector and that while the nation's employment situation has been improving, the government needs to keep abreast of developments on a global level.