Investment growth is expected to slow in many countries as governments and investors cut or delay capital expenditures in a context of fiscal consolidation.
Needs for Fiscal Restructuring While I have so far talked about the direction for strengthening growth potential of Japan's economy, an important challenge that also relates to that is fiscal consolidation.
We are convinced that by implementing our agreed policies we will limit the longer-term costs to our economies, thereby reducing the scale of the fiscal consolidation necessary over the longer term.
However, it will be increasingly important to address medium- to long-term issues that Japan's economy faces, such as the declining birthrate and aging population as well as fiscal consolidation.
新社会党 Prime Minister Noda Yoshihiko says the Fiscal 2012 draft budget represents a good package combining financial reconstructive measures with economic growth, calling it'a budget of the first year of Japan's revival.
Remittance inflows have been subdued recently due to fiscal consolidation and growth slowdowns in the Middle East, which constitutes roughly half of remittances to South Asia.
The conditions needed to achieve r<g in the Japanese economy are that the expectation of fiscal consolidation is shared widely in the market and that an extremely high level of uncertainty in the private sector continues.
However, I am aware that a number of domestic issues, such as the declining birth rate and population aging along with the need for fiscal consolidation, have made some people skeptical about the future of Japanese growth.
At the meeting, Prime Minister Noda stated that Japan supported the series of efforts for reform undertaken by Prime Minister Monti for fiscal reconstruction and economic growth.
This member added that the effects of fiscal consolidation depended not only on the scale of expenditure cuts but also on how the components of expenditure would be reviewed, and therefore the effects should be assessed only after the broad outline of the fiscal 2002 budget became available.
Greece has subsequently implemented fiscal consolidation measures while receiving financial support by euro area countries and the International Monetary Fund, but has remained to face a tough situation with negative economic growth and slow progress in fiscal consolidation.
However, the reforms that force inconveniences and genuine suffering on its citizens, such as the fiscal reconstruction measures Ms. Rousseff commenced in January 2015, are hard to promote without a solid administration base even in times of a booming economy.
The Abe Cabinet which was inaugurated last year is boldly embarking on a"rising-tide strategy" with the aim of creating a dynamic nation under the principle that"there can be no fiscal consolidation without growth."The Japanese business community has high expectations for this policy.
The IMF called on Asian nations to learn from Japan's experience and deal with demographic headwinds early, such as by introducing credible fiscal consolidation plans, boosting female and elderly labour force participation, and revamping social safety nets.
The IMF called on Asian nations to learn from Japan's experience and deal with demographic headwinds early, such as by introducing credible fiscal consolidation plans, boosting female and elderly labor force participation, and revamping social safety nets.
And, in contrast with the US and the UK, the economy cannot expect to receive additional'dividends' such as a substantial decline in long-term interest rates accompanying fiscal consolidation, since in Japan there is little room for any further decline in interest rates.
The Government of Iceland will do all in its power to secure that the referendum outcome will not have a major impact on Iceland's economic programme and the fiscal consolidation plan which it has been pursuing with a high degree of success.
In practice, a balanced approach may be required between a medium- to long-term commitment for fiscal consolidation and the short-term flexibility in policy. Even so, the government should ensure that it will not lose sight of the importance of fiscal consolidation and that it will reinforce its medium- to long-term commitment on that front.
Together with fiscal consolidation and stepped-up structural reforms in several euro area countries, as well as progress towards a stronger euro area economic governance framework, they have contributed to a significant improvement in the financial environment over recent months.
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