(Bloomberg) -- New Japanese Prime Minister Shigeru Ishiba emphasized in his first speech to parliament that his top economic priority is to defeat deflation and put the nation on a stable growth track.
“I will decisively end deflation and build a future for our economy,” Ishiba said during a speech Friday that largely underscored policy positions he laid out in recent weeks during his run to become national leader, and which signal continuity with his predecessor.
Ishiba said he would seek to raise wages, boost productivity, support the revival of rural areas and turn Japan into an “investment powerhouse” by continuing to encourage a shift of private savings into investment. On the subject of politics, Ishiba began his speech by vowing to ensure his party would boost transparency and play by the rules.
Ishiba’s speech was effectively a pitch to voters ahead of an Oct. 27 general election through which he aims to secure a mandate by promising a bright economic future. The premier also hopes to put to rest any lingering voter resentment over a political funding scandal that shook the ruling Liberal Democratic Party and undermined support for predecessor Fumio Kishida.
To help the vulnerable and boost growth, Ishiba said government spending would be used where appropriate, although he also pledged to improve the battered national balance sheet.
Earlier Friday, Ishiba instructed his cabinet to draw up a package of spending that government ministers said would include help for low-income households coping with rising prices for essential items ranging from rice to fuel. The package outline envisions a concerted three-year window for eradicating deflation, a time period that suggests the government won’t be calling an end to deflation any time soon.
“I will protect the economy and peoples’ livelihoods,” Ishiba said.
As a way to measure individual prosperity and well-being, Ishiba said he will introduce a “happiness index,” an idea that has become popular internationally in recent years and can be traced to an index of “gross national happiness” introduced by Bhutan in the 1970s.
Ishiba’s speech didn’t touch on monetary policy after his remarks on the subject caused a stir in the markets earlier this week. He subsequently clarified those comments, explaining that he was merely intending to show alignment with Bank of Japan Governor Kazuo Ueda.
On foreign policy, Ishiba reiterated that Japan’s alliance with the US would remain the cornerstone of Tokyo’s approach to dealing with rising regional security challenges. Japan will also continue to raise its own defense capabilities, Ishiba said.
Amid tension with China over recent military incursions and the stabbing death of a Japanese child in China, Ishiba said he’ll seek a constructive and stable relationship with Beijing while also clearly pressing Japan’s interests.
There will be no change to Japan’s support for Ukraine and its sanctions on Russia, Ishiba said.
©2024 Bloomberg L.P.