Japan's Government Panel Advocates for Private Sector-Led Economic Growth

The panel calls for a shift from crisis-mode stimulus to demand-driven growth in response to rising domestic prices and interest rates.

A government panel in Japan has recommended a shift in economic policy focus from crisis-mode stimulus to achieving private sector-driven economic growth.
This comes after the central bank's decision to end eight years of negative interest rates, signaling a new stage in monetary policy.
The panel's proposal aims for a domestic demand-driven growth and a sustainable fiscal structure, moving away from heavy fiscal and monetary support.
Private-sector members of the government council emphasized the need for continued cooperation between the government and the Bank of Japan to ensure rising wages.
The aging population and its impact on long-term economic growth were also discussed, with projections showing Japan's per-capita GDP growth trailing behind other major economies by 2060.