Prime Minister Shigeru Ishiba, who assumed office on Tuesday, has announced his plans to swiftly develop economic measures in response to the rising prices. Ishiba aims to continue the economic policies of his predecessor, former Prime Minister Fumio Kishida, with a focus on achieving an economy driven by wage increases and active investments. During a press conference on Tuesday, Ishiba stated that he will instruct the consideration of economic measures that will assist those struggling with rising prices. Emergency measures such as cash distributions to low-income households are among the initiatives he intends to include in his economic plan. Once these measures are compiled, the Ishiba administration aims to promptly pass an additional budget for their implementation.
Ishiba emphasized his commitment to continuing the growth strategy implemented by the Kishida administration and conducting economic and fiscal management prioritizing an exit from deflation. To prevent a return to deflation, sustainable wage hikes are crucial according to Ishiba. He expressed his goal of raising the nationwide average minimum wage to ¥1,500 by the end of 2020s and advancing Kishida’s target of achieving this increase by mid-2030s.
Furthermore, Ishiba aims for Japan to become an investment superpower with priority given to industries such as automobiles, semiconductors, and agriculture. He believes that revitalizing regional areas is essential for driving economic growth and intends to leverage this momentum for boosting Japan’s economy.
The new administration plans on outlining its initiatives for implementation over the next decade while also addressing tasks inherited from its predecessor’s Cabinet including determining when defense budget tax hikes should be implemented. Additionally, attention is being paid towards how the Ishiba administration will handle policies requiring increased public burden.
Finance Minister Katsunobu Kato has been instructed by Prime Minister Ishiba “to conduct fiscal management in an appropriate manner.” As they strive towards exiting deflationary conditions responsibly while playing a significant role in this endeavor.
