Japanese Prime Minister promises to increase GDP by more than 20 percent to 4.46 trillion euros!

Japanese Prime Minister Shinzo Abe has promised to increase the gross domestic product (GDP) by more than 20 percent, to 600 trillion yen, or 4.46 trillion euros, and announced three new goals of ‘Abenomics’ aimed at achieving such strong economic growth.

“The economy will continue to be our main priority,” Abe said on Thursday at a press conference marking the start of his new three-year term as head of the ruling Liberal Democratic Party, and thus as Prime Minister, where he presented a new plan. He did not provide details, such as a deadline for achieving the targeted GDP.

– “The goal is to create the largest economy in the post-war period so that people can live in as much prosperity as possible. I will set as our clear goal a GDP value of 600 trillion yen (4.46 trillion euros).”

Reuters, however, notes that in 2014, the nominal value of Japan’s GDP was 491 trillion yen, which means it has decreased by one percent since 1994.

The Japanese Prime Minister also outlined three new goals of ‘Abenomics’, the economic policy named after him, which is based on massive monetary stimulus from the Japanese central bank, increased government spending, and structural reforms aimed at ensuring long-term economic growth and stimulating inflation, given that Japan has struggled with deflation for decades. The three new goals of ‘Abenomics’ consist of supporting economic growth, reforming the social welfare system to ease the burden on families raising children and caring for elderly family members. A plan to raise the consumption tax rate in April 2017 to 10 percent from the current eight percent has also been confirmed, provided there are no economic shocks in the meantime.

Critics may view the projected GDP increase as unrealistic since it implies a growth level that the country has not achieved in the past two decades. Economists, on the other hand, doubt that the government will adopt measures bold enough to come close to the stated goal.

The difficulty of achieving Abe’s goals is evidenced by a series of recent economic data, from weak exports to sluggish domestic consumption. Data released on Friday showed that Japan is once again seriously threatened by deflation. Core consumer prices fell by 0.1 percent in August compared to the same month last year. This is the first annual price decline since April 2013, when the Japanese central bank launched a massive monetary stimulus program to combat deflation. Once welcomed with enthusiasm, ‘Abenomics’ has so far not delivered the expected results, as evidenced by data showing that the Japanese economy is growing slightly, then falling slightly. Support for the Japanese Prime Minister is also declining.

Since the beginning of Abe’s term in late 2012, nominal Japanese GDP has increased by 5.8 percent.