Japanese government weighs vouchers and promotions to boost consumption
TOKYO (Reuters) – Japan’s government could issue spending vouchers and promote nationwide discount sales events similar to Black Friday in the United States to boost its lackluster consumer spending and accelerate gross domestic product growth.
The government could decide the details as early as next month as it finalizes the policies for its annual growth strategy, which could potentially help the Bank of Japan in its fight to accelerate inflation.
Authorities will also take steps to increase inbound tourism, raise the national minimum wage and encourage more IT investment, according to a plan approved by the government’s top advisory committee on Monday.
The goal of this year’s growth strategy is to meet Prime Minister Shinzo Abe’s target of raising nominal gross domestic product to 600 trillion yen ($5.40 trillion).
However, some economists said weak real wage growth and a shrinking Japanese labor force made it difficult to achieve this target. At the end of 2015, nominal GDP was around 500 trillion yen.
Consumer spending accounts for about 60% of the Japanese economy, and the focus is once again on the household sector, as consumption has struggled to gain momentum lately.
There is also lingering speculation that Abe will cancel a national sales tax increase planned for 2017 and focus more on fiscal spending to boost GDP and rebuild earthquake-damaged areas in southern Japan in Japan. Beginning of the month.
Previously, Japan’s ruling Liberal Democratic Party issued shopping vouchers, which economists say tend to only temporarily boost consumer spending and the economy in general.
In the United States, Black Friday is the name given to the November day following the Thanksgiving holiday, when shoppers block stores in an attempt to secure huge discounts.
Reporting by Stanley White; Editing by Richard Borsuk