Japan plans to raise minimum wage again in stimulus package

By FXStreet FXStreet (Mumbai) – At a meeting of the government’s top advisory panel today the Japanese Economics Minister Akira Amari presented the draft of stimulus measures. The draft includes reform measures that analysts believe is the need of the hour to pull the Japanese economy out of recession. The economy slid into technical recession with registering negative GDP growth in the third quarter. Japan slipped into recession for the second time since PM Abe entered office in December 2012. The aggressive easing policy could not produce the desired results thus far forcing the BOJ to push back the time by which it expected to achieve its inflation target. The government will thus have to do more to foster durable growth.

PM Abe had asked Economy Minister Akira Amari to chart measures to help achieve Abe’s goal of expanding Japan’s nominal GDP by 20 per cent to 600 trillion yen over five years.

Abe’s government plans to raise minimum wages to boost spending

Raising wages is extremely crucial at this stage as it will help to increase spending. More disposable income will lead people to spend more thereby boosting demand. Only then can the economy gradually move out of 15 years of deflation.

Japan’s government plans …read more

Source:: FX Street