Japan must boost consumption to counter China slowdown: panel

Japanese Prime Minister Shinzo Abe's top economic advisory panel, concerned about China's economic slowdown, will recommend the government to counter that weakness by boosting domestic demand, a draft report shows. 

PHOTO: BLOOMBERG

SEP 10, 20158:24 PM

[TOKYO] Japanese Prime Minister Shinzo Abe's top economic advisory panel, concerned about China's economic slowdown, will recommend the government to counter that weakness by boosting domestic demand, a draft report shows.

"China's economy is displaying weaker movements and a sense of uncertainty," the Council on Economic and Fiscal Policy said in a draft report, seen by Reuters on Thursday.

To cushion the blow from China's slowdown, Japan should take steps to boost consumption to 70 per cent of gross domestic product from about 60 per cent now, the panel said in the draft proposals, to be presented to Mr Abe on Friday.

The draft offers no specifics on how to raise domestic demand as a portion of gross domestic product, but recommends improving working and income conditions, and boosting aid for raising children.

It also calls for investment to improve productivity and steps to encourage more women, young people and elderly people to work.

REUTERS