LONDON (Reuters) - Japan must raise productivity through labor market reforms in order to grow its economy at a time when population is declining, Prime Minister Shinzo Abe said in London on Thursday.
“Japan’s population is declining. In order to grow, we must raise productivity ... We need to reform labor regulation in order to make working conditions more flexible,” Abe said, in an answer to a question by Bank of England Deputy Governor Andrew Bailey.
“Over the past year we’ve realized how difficult it has been to do so. But we cannot grow without labor reforms. We are determined to make that happen,” he told business leaders.
Reporting by Natsuko Waki and William James