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