ID :
196592
Fri, 07/22/2011 - 14:55
Auther :
Shortlink :
https://oananews.org//node/196592
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Gov't report calls for enhancing economic resilience after disaster
TOKYO, July 22 Kyodo - Japan needs to enhance its economic resilience to achieve sustainable growth after the March 11 earthquake and tsunami as the disaster and subsequent nuclear crisis may exert downward pressure on the nation's medium- to long-term economic growth, a government report said Friday.
While pointing out that the disaster may prompt businesses to curb capital investment and could encourage them to move production overseas, the Annual Report on the Japanese Economy and Pubic Finance called for shifting the Japanese economy to ''an economy resilient to crises'' in promoting reconstruction.
It noted that the disaster has inflicted wider damage on production activities than earlier major disasters, including the January 1995 Great Hanshin Earthquake.
The report, submitted to the Cabinet meeting on Friday, said enhancing productivity through the introduction of new technologies for the reconstruction of disaster-hit areas in northeastern Japan and more investment in human resources is key to medium- and long-term growth.
The report also said that opening up the economy through free trade agreements would also help Japan to improve its productivity and take advantage of world economic growth.
On the ongoing nuclear crisis at the Fukushima Daiichi power plant, the report said electricity supply constraints have become a huge risk for Japan's medium- and long-term economic growth, calling for the establishment of a system to ensure stable, safe and efficient energy supplies.
On public finance, the report said the government needs to balance post-disaster reconstruction spending and fiscal consolidation, while maintaining efforts to reduce its expenditures, including social security costs.
The report also noted that the Japanese economy has remained basically deflationary due to a chronic shortfall in demand, although price rises following the disaster have raised inflation expectations among households.
While pointing out that the disaster may prompt businesses to curb capital investment and could encourage them to move production overseas, the Annual Report on the Japanese Economy and Pubic Finance called for shifting the Japanese economy to ''an economy resilient to crises'' in promoting reconstruction.
It noted that the disaster has inflicted wider damage on production activities than earlier major disasters, including the January 1995 Great Hanshin Earthquake.
The report, submitted to the Cabinet meeting on Friday, said enhancing productivity through the introduction of new technologies for the reconstruction of disaster-hit areas in northeastern Japan and more investment in human resources is key to medium- and long-term growth.
The report also said that opening up the economy through free trade agreements would also help Japan to improve its productivity and take advantage of world economic growth.
On the ongoing nuclear crisis at the Fukushima Daiichi power plant, the report said electricity supply constraints have become a huge risk for Japan's medium- and long-term economic growth, calling for the establishment of a system to ensure stable, safe and efficient energy supplies.
On public finance, the report said the government needs to balance post-disaster reconstruction spending and fiscal consolidation, while maintaining efforts to reduce its expenditures, including social security costs.
The report also noted that the Japanese economy has remained basically deflationary due to a chronic shortfall in demand, although price rises following the disaster have raised inflation expectations among households.
