Local media reported Friday that the white paper released by the Japanese government on the economy and finances for fiscal 2021 stressed the importance to build a Japanese economy capable of flexibly responding to emergencies such as supply chain disruption and climate change, as Japan was unable to focus on reviving the economy while struggling to contain the pandemic.
The annual government report said Japan's domestic economy stood in "a recovery phase but its pace is moderate," and needed to solve three pressing issues -- balancing COVID-19 measures with economic revitalization, strengthening supply chains, and promoting business restructuring and labor market liquidity.
The while paper called for practical ways including use of a vaccination certificate to revive consumption and help support corporate activities, given that more than half of Japan's population have been fully vaccinated against COVID-19.
The report called Prime Minister Yoshihide Suga's pledge to achieve carbon neutrality by 2050 and establish the Digital Agency a "big first step toward reforms," which has prompted firms to invest in digitalization and decarbonization.
Japan has stayed with the goal to turn the primary balance, tax revenue minus expenses other than debt-servicing costs, into the black by fiscal 2025. However, the report said the "immediate task" is to grow the economy.
The report expected Japan's real gross domestic product would return to the pre-pandemic level by the end of this year.
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