Shinzo Abe committed Japan to much faster and deeper economic reform yesterday, as he declared in Davos that his country was about to “break free” from years of deflation.
In a passionate address in English to open the World Economic Forum, Japan’s prime minister focused on his plans to add structural reforms to loose monetary policy and fiscal flexibility – a third arrow of “Abenomics” – but also addressed Tokyo’s strained relationship with Beijing and Seoul.
“Japan’s economy is just about to break free from chronic deflation,” said Mr Abe, predicting higher wages and consumption.
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