December 8, 2015 8:14 pm JST
Japan Economy

GDP target of 600 trillion yen reachable, Abe says

SHOTARO TANI, Nikkei staff writer

TOKYO -- Raising Japan's nominal gross domestic product to 600 trillion yen ($4.9 trillion) is a reachable goal, Prime Minister Shinzo Abe told a group of economists in Tokyo on Tuesday.

     "We are aiming to achieve a virtuous cycle of growth and redistribution with our 'Society in Which All Citizens are Dynamically Engaged' plan. This is our proposal for a new socioeconomic system," the Prime Minister told the group.

     "We will aim to build a diverse society where anyone can succeed. That will lead to new ideas, which will lead to further growth. Through growth and redistribution, I believe our target of achieving nominal GDP of 600 trillion yen is well within our reach." Japan's current nominal GDP is around at 500 trillion yen.

     Abe told the gathering that the government is putting together a 3.5 trillion yen supplementary budget and that he hoped to use around 1 trillion yen of the extra money on his "Dynamic Engagement" project.

     "According to news reports," Abe said, "we will lower the effective corporate tax rate to just under 30% in fiscal 2016. I can't comment on this, but we will strive to make Japan the best place for corporations to invest."

     Bank of Japan Gov. Haruhiko Kuroda, speaking at the same forum, gave Abe a vote of confidence, saying the number of "people who say Japan is in deflation has decreased. The bank will continue with its aggressive monetary policy to support corporations' efforts, and, if necessary, will not hesitate in making adjustments."

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