Japan businesses hope for sustained economic growth under next PM

TOKYO — Japan's business leaders have expressed hope that Shigeru Ishiba, the newly elected president of the ruling Liberal Democratic Party, will accelerate the country's economic growth amid signs of recovery, including rising wages and prices.

Ishiba, who is set to replace Fumio Kishida as prime minister, is expected to come up with a stimulus package immediately after taking office.

Masakazu Tokura, chairman of the Japan Business Federation, the country's biggest business lobby, described Ishiba as "a leader who is ready to propel innovations."

"Our country is facing a turning point to see if we can move out of deflation completely," Tokura said in a statement, stressing that political stability is imperative in implementing necessary policies in a timely manner to realize growth.

Ken Kobayashi, chairman of the Japan Chamber of Commerce and Industry, sees Ishiba as "well-versed in policy" and a "man who takes the bull by the horns."

"The Japanese economy has made the first step toward economic growth. We hope he will accelerate this momentum," Kobayashi told reporters, referring to the biggest pay increase in over 30 years in this year's spring wage negotiations.

The Japan Association of Corporate Executives requested that Ishiba's government work to reduce the economic burden on working generations by evaluating the cost-effectiveness of government spending in health care, child-rearing, and national defense.

"The Japanese economy is at a turning point," said Takeshi Niinami, chair of the association, in a statement. "We hope he pushes forward on critical issues both domestically and internationally," such as revitalizing regional economies and improving the country's growth rate.

Ryuichi Isaka, president of Japanese retail giant Seven & i Holdings Co, said Ishiba's administration should increase collaboration with the private sector "to realize a virtuous cycle of economic growth and increased consumption."

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