Cairns, Australia - US Treasury Secretary Jack Lew told Japanese Finance Minister Taro Aso that Japan must remain committed to all “three arrows” of its economic revival plan to sustain healthy domestic growth, a Treasury official said on Friday.
Lew, speaking with Aso on the sidelines of the G20 Finance Ministers meeting in the Australian city of Cairns, reaffirmed that strong, sustainable domestic growth was beneficial for both of their countries, the official said on the condition of anonymity.
“Secretary Lew emphasised the need for Japan to remain committed to calibrating all three arrows of Japan's economic policy to sustain a healthy rate of domestic demand growth,” the official said.
Earlier on Friday, Lew told reporters that more work was needed to achieve faster and more balanced economic growth and to boost demand in what he called “surplus” countries, highlighting the euro zone and Japan.
Prime Minister Shinzo Abe's goal of reflating Japan's long-morobund economy hinges on a three-pronged plan for massive monetary easing, higher spending and reform, but gloomy economic data suggest it is not succeeding as hoped.
The only short-term contingency plans appear to be further central bank stimulus or delaying a second rise in the sales tax set for October 2015. - Reuters