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On February 24, 2021, the Prime Minister held the second meeting of the Council on Economic and Fiscal Policy in 2021 at the Prime Minister’s Office.
 
At the meeting, the participants engaged in discussions on macroeconomic management (intensive discussion on monetary policy, commodity prices, and other issues) and the efforts towards a Green New Deal.  
 
Following the discussions, the Prime Minister said,
 
“Today, we held discussions on economic management with a view to the period after lifting the declaration of the state of emergency. Overall, the Japanese economy is continuing to show movements of picking up. The ordinary income of listed companies has increased by about 20% from the previous year, while companies are still facing severe situations in some sectors. Moreover, corporate and household cash and deposits have increased by about 40 trillion yen and about 50 trillion yen respectively, compared to last year.
 
Amidst such a situation, in order to restore the Japanese economy to a growth track, it is vital to regain the momentum of wage increases so that the people can expect an increase in income. I believe that we must restore and further strengthen the virtuous cycle of expanding consumption through wage increases, increasing corporate profits, and having corporations make capital investments for the future. The Government has appealed for companies to sustain the momentum of wage increases that has continued so far. I would like them to answer this appeal by reflecting their business performance in wages.
 
On top of this, to achieve a powerful growth in the post-corona age, I believe ‘green’ and ‘digital’ are our top priority. The realization of a green society will have great impact on the Japanese economy, and in particular, Japan still has room for improving energy efficiency. It is estimated that, by advancing research and development and capital investment in priority areas, such as offshore wind power, hydrogen, and storage batteries, we can achieve a yearly economic impact of 90 trillion yen and create employment for 8.5 million people by 2030.
 
There are many important international conferences to be held, including the 26th session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP26) in November this year. The Government will work as one and proceed with formulating concrete measures for the Long-Term Strategy towards 2030 and 2050, and by doing so, we will lead the international community in such fields as advanced technology, which is Japan’s strength, and realize a carbon-free society.”