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Japan needs a resilient economy to meet new challenges (white paper)

By on September 24, 2021 0

Japan needs a “resilient” economy to overcome new challenges by seeking ways to curb the spread of the coronavirus and promote economic activities simultaneously, and by implementing reform measures to improve the business environment , a government report said on Friday.

With the nation still struggling to contain the pandemic and unable to focus on reviving the economy, it is vital to build an economy that can flexibly respond to emergencies such as supply chain disruption and disruption. climate change, according to the White Paper on the Economy and Finance for FY2021.

People wearing face masks walk through Tokyo’s Marunouchi business district on August 2, 2021. (Kyodo)

At a time when the national economy remains “in a phase of recovery but its pace is moderate,” the annual report says the country must tackle three pressing issues: balancing COVID-19 measures with economic revitalization, strengthening supply chains and promote business. restructuring and liquidity of the labor market.

The white paper calls for practical ways, including the use of a vaccination certificate, to boost consumption and help support business activities.

The government said last week that more than half of Japan’s population was fully vaccinated against COVID-19, with the vaccination rate finally catching up to that of the United States, Britain and other major economies after the slow deployment.

On supply chain disruptions, further action is needed to address supply shortages of key products such as semiconductors and auto parts whose production has been affected by the pandemic in Asia. from the South East.

The report calls Prime Minister Yoshihide Suga’s commitment to achieve carbon neutrality by 2050 and the creation of the Digital Agency as a “big first step towards reform”, which has prompted companies to invest in digitization and decarbonization.

The country’s real gross domestic product, which declined last year due to the economic fallout from the spread of the virus, is expected to rebound to a pre-pandemic level perhaps by the end of this year, he said. he declares.

The report comes ahead of Wednesday’s vote for the new chairman of the ruling Liberal Democratic Party, who will succeed Suga.

The four candidates of the LDP race plan to compile a stimulus plan to continue to support the economy affected by the pandemic.

Japan, whose fiscal health has long been the worst among major developed countries, aims to reduce its primary balance – tax revenues minus spending other than debt service charges – to the moonlight by fiscal year 2025. But the report says the “immediate task” is to get the economy back on the path to growth.