Japan Govt Adopts Economic, Fiscal Policy Guidelines for 2024

   Tokyo, June 21 (Jiji Press)--The Japanese government on Friday adopted its economic and fiscal policy guidelines for 2024, which call for fully overcoming deflation and transitioning to a "new growth-oriented economic stage" through continued wage increases and improvements in small businesses' earning power.
   In the annual guidelines, the government said it will take "intensive measures, including necessary institutional reforms, over the next three years or so" to stably achieve real gross domestic product growth of over 1 pct, which is considered necessary to sustain the country's social security system.
   The government noted that a nominal GDP of 1,000 trillion yen will be in sight around 2040 if the country achieves such GDP growth and 2 pct inflation.
   The guidelines are drawn up around June each year to set the government's policy directions on key issues and its budget for the next fiscal year.
   In the 2024 guidelines, the government mentioned a "historic opportunity to achieve a growth-oriented economy," in light of large wage hikes achieved in this year's "shunto" labor-management negotiations and robust corporate capital investment.

(2024/06/21-18:22)

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