TOKYO (MNI) – The government will try to achieve an average 1% rise
in prices based on gross domestic product through fiscal 2020, according
to the outline of the growth strategy to be compiled later this month,
the Nikkei reported on Wednesday.

The plan lists the environment, health care, and tourism as growth
industries with the potential to spur the consumer price index into
positive territory in fiscal 2011 that starts on April 1.

To ensure that the economy does not fall back into deflation, the
government will strive to realize stable economic growth. It will also
seek to make progress on longer-term measures for improving the nation’s
fiscal health under a separate plan.

The growth strategy will shoot for average GDP growth of 3% in
nominal terms and at least 2% in inflation adjusted terms through fiscal
2020. The plan envisions the GDP deflator, a gauge of overall price
movements, increasing an average 1% a year over the coming decade. The
government also aims to quickly bring the unemployment rate down to the
3% level from the current 5%.

To further bolster the fight against deflation, the plan calls for
the Bank of Japan’s monetary policy cooperation. The BOJ should make the
“utmost efforts with its monetary policy to help find a way out of
deflation,” the outline said.
** Market News International Tokyo Newsroom: 81-3-5403-4833 **

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