Eniola Olorundare
Japan needs to develop strategies to curb the widespread COVID-19 infections in order to achieve a resilient economy.
This could be done by implementing reform measures to improve the business environment, a government white paper said.
Local media reported Friday that the white paper released by the Japanese government on the economy and finances for fiscal 2021, stressed the importance to build a Japanese economy.
The economy capable of flexibly responding to emergencies such as supply chain disruption and climate change, as Japan was unable to focus on reviving the economy while struggling to contain the pandemic.
The annual government report said Japan’s domestic economy stood in “a recovery phase’ but its pace was moderate, and needed to solve three pressing issues balancing COVID-19 measures with economic revitalisation.
Strengthening supply chains, and promoting business restructuring and labour market liquidity.
The white paper called for practical ways, including use of a vaccination certificate to revive consumption and help support corporate activities, given that more than half of Japan’s population had been fully vaccinated against COVID-19.
The report called Prime Minister Yoshihide Suga’s pledge to achieve carbon neutrality by 2050, and establish the Digital Agency a “big first step toward reforms, which had prompted firms to invest in digitalisation and decarbonisation.
Japan had stayed with the goal to turn the primary balance, tax revenue minus expenses other than debt-servicing costs, into the black by fiscal 2025.
However, the report said the immediate task was to grow the economy.
The report expected Japan’s real gross domestic product would return to the pre-pandemic level by the end of 2021.
