Japan′s stimulus and monetary-easing initiatives
have so far fallen short of reviving the country′s decades-long economic slump.
The Japanese government has also recently made raising wages a top priority.
But will this new measure meet expectations? Kim Min-ji reports.
Japanese Prime Minister Shinzo Abe has made it a top priority to raise wages,… saying
that it is the key to success in Abenomics. The aim is to spur domestic consumption,…
with the hope of escaping from a low growth trap. “Companies need to raise wages and investment
and consider the prices they pay their suppliers.” Last year, Japan′s large corporations lifted
their wages by nearly 2-point-3 percent on average the largest jump in 17 years.
About half of listed firms are also considering raising wages by a similar amount this year.
“People around me are spending more. I think the wage hike has had a big impact.”
The Abe administration has been going all out to sustain the economy′s emergence from
two decades of stagnation, mainly by pumping in more money.
Although the expected effects haven′t kicked in yet,… analysts are optimistic.
“We can see there are efforts to ease labor-related regulations and corporate tax rules,… as
well as reform of pension management institutions.” With Korea suffering from low consumer prices
and looming fears of deflation,… experts have warned that Seoul is at risk of following
the steps taken by Japan during its lost decades. Korea Finance Minister Choi Kyung-hwan has
vowed to do all he can to prop up the economy,… which includes raising wages to boost domestic
spending. Kim Min-ji, Arirang News.