Daily Management Review

Growth Strategy Priorities Laid Out By Japanese Government


Growth Strategy Priorities Laid Out By Japanese Government
A set of initiatives and programs focused on promotion of green technology and digitalisation was announced recently by Japan. These measures are a part of the government’s efforts for giving a boot to the economy for long term growth.
The outline of the project was a result of discussions of a panel that as set up to debate the growth strategy of the country and this outline will serve as a backbone for any new stimulus package that could be compiled by the government later this year.
This move also comes at a time when there is a race for the ruling party's leadership which has to be won by Prime Minister Yoshihide Suga to retain his position as the head of state and given further shape and implement his policy initiatives.
In the initiative outline, the Japanese government has pointed out the areas that would require need closer scrutiny in the coming months and they are from among a list of steps included in Suga's growth strategy that was unveiled back in June.
The initiatives or the steps include the plans for expansion of the production of batteries for electric cars and building more charging station for the cars throughout the country and government support for attracting private players to set up more semiconductor plants in the country. The list of initiatives also comprise of measures for speeding up digital transformation of public services such as medical care, according to the outline.
A rebound in exports helped the Japanese economy to crawl out of the Covid-19 pandemic induced slump last year. But according to economists and analysts, further recovery of the economy is expected to be just modest at best as private consumption, an important component of the economy, is being hurt by a surge of the pandemic in the country.
Boosting labour productivity and the participation rate are the strategies that the government is hopeful would help in raising growth of the economy in the long term.
In June, while announcing the growth strategy of the country, the government had also given a call for fostering greater innovation and digital transformation. However the future of the plan could be in trouble as the political standing of Suga is being argued to be waning just ahead of the elections.