FACTBOX-What is Japan's growth strategy?

Thu Jun 17, 2010 11:04pm EDT

(For more stories on Japan's economy, click: [ID:nECONJP])

By Rie Ishiguro

TOKYO, June 18 (Reuters) - The Japanese government said on Friday it aims to achieve consumer inflation within the fiscal year to March 2012 by boosting demand in clean energy and other key areas, with escape from deflation its top priority.

It unveiled a strategy designed to boost growth to more than 2 percent on average over the coming 10 years.

Following are key points in the plan:

(new details)

-- Achieve consumer price rises within fiscal 2011/12 and quickly realise stable inflation rates and end deflation.

-- Expect the Bank of Japan to do its utmost to end deflation.

-- Cut corporate tax, now around 40 percent, to overseas levels in stages.

(from December outline)

-- Aim for nominal GDP growth of more than 3 percent and real GDP growth of more than 2 percent on average over the 10 years to the fiscal year starting in April 2020.

-- Aim to bring down Japan's jobless rate to a 3.0-3.9 percent range at an early date from over 5 percent now.

-- Allow all children access to pre-school education by 2020.

-- Growth strategy to focus on seven key areas: 1) environment and energy, 2) health, 3) Asia, 3) tourism and revitalising regions, 4) health, 5) science and technology, 6) employment, 7) financial, and 21 projects.

ENVIRONMENT

(new details)

-- Boost renewable energy market to 10 trillion yen ($110 billion) by 2020.

-- Build environment-oriented cities featuring electric cars and energy-efficient houses and buildings based on tighter regulation and tax breaks for green products.

-- Achieve self-sufficiency in timber to more than 50 percent.

-- Aim to help cut overseas greenhouse gas emissions using Japan's technologies by at least 1.3 billion tonnes, or the equivalent of Japan's total emissions.

(from outline in December)

-- Create 1.4 million new jobs in environment-related industries and expand the sector by over 50 trillion yen through new services and products by 2020.

HEALTH

-- Introduce a long-term visa for foreigners receiving medical treatment, enable foreign doctors and nurses to practice medicine in Japan at an early date.

-- Achieve an economic boost of 700 billion yen per year through deregulation and more spending on new drugs and medical equipment, and by boosting market for regenerative medication.

(from December outline)

-- Create 2.8 million new jobs in the medical, nursing-care and health-related sectors by 2020 and expand the sectors by around 45 trillion yen through new services and products.

ASIA

-- Create a market worth 19.7 trillion yen for overseas plant project contracts by 2020.

-- Encourage foreign firms to relocate Asian headquarters and research and development facilities to Japan with tax breaks, starting from 2011/12.

-- Double the number of highly skilled foreign workers in Japan, accept 300,000 students from abroad by 2020.

-- Promote economic cooperation including a possible Free Trade Area of the Asia-Pacific (FTAAP).

-- Achieve revenue of 1 trillion yen from businesses such as fashion and film by 2020.

TOURISM AND REVITALISING REGIONAL AREAS

(new details)

-- Create globally strategic special industrial zones through deregulation and tax incentives.

-- Make Haneda airport in Tokyo an international hub open around the clock.

-- Double private finance initiatives for infrastructure development to at least 10 trillion yen by 2020.

-- Double the market for existing houses and housing renovation to 20 trillion yen by 2020.

SCIENCE AND TECHNOLOGY

-- Create at least 100 research and education facilities that achieve world standards.

FINANCE

-- Create a comprehensive exchange for trading securities, commodities and other financial products by fiscal 2013/14. ($1=90.92 Yen) (Reporting by Rie Ishiguro; Editing by Michael Watson)

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Comments (1)
TourNCare wrote:
Japan entered in to medical tourism industry couple of years ago, but there are not enough signs to suggest that medical tourism took off as Japan targets rich patients from neighbouring countries and diaspora. It is glad to see that Japan is focussing on Medical Tourism.
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Jun 18, 2010 6:24am EDT  --  Report as abuse
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