It is important that the government, for its part, make efforts to take measures, for example, to increase labor supply and proceed with regulatory reforms that will lead to tapping of potential demand and increasing value-added.
In addition, in order to encourage firms to make active fixed investment in Japan and increase the economy’s growth potential through accumulation of capital stock, it is necessary to take measures to increase firms’ medium- to long-term expectations for the growth rate of domestic demand.