Japanese Prime Minister Shinzo Abe has urged companies to agree to pay higher wages to employees in upcoming spring negotiations with labour unions.
“We need to create a good cycle in which improved corporate earnings get reflected in wages, lead to consumption growth and then boost corporate earnings further,” Abe said.
Abe’s so-called “Abenomics” policies of trying to push Japan out of two decades of stagnation by a massive injection of economic stimulation has met with some early success.
The weakened currency, the yen, has boosted exports, and the creation of a moderate level of inflation has boosted consumer spending.
