Revived Japanese economy could catalyse growth in Asia: Shinzo Abe

Speaking at the end of the first day of the annual Nikkei Conference, yesterday, Japanese prime minister Shinzo Abe came out in aggressive support of his economic strategies, saying that a revived Japanese economy could catalyse growth in Asia.

At the annual conference, which is a meeting of top business and political leaders that discusses economic development in the region and its impact to the global economy, current and former prime ministers and business executives were present.

Prime minister Abe said that Japan was committed to contribute to Asia's economic dynamism and to ensuring the rule of law in the international arena.

In response to criticism of his big spending fiscal policies, the premier explained that his country's depressed state had prompted him to act. ''The sickness of deflation directly undermined people's hopes and expectations.

When this situation became chronic, optimism disappeared from the country,'' he said. These economic platforms dubbed ''Abenomics'' by the media won both praise and and also attracted criticism.

A number of industry experts had praised the strategy for bringing new hope to the Japanese market, as economic numbers were evidently improving. Others said that Abe's party, the ruling Liberal Democratic Party, had never been quite successful in implementing wide economic reforms, in the absence of which, the critics argue, this seeming growth could only be a ''sugar high'', an artificial improvement.

Abe is currently in Burma on the first visit by a Japanese head of government after 1977. He is accompanied by a business delegation that is keen on strengthening economic ties with Burma.

Japan, a key aid donor to Burma, had maintained trade relations with the country during its years of rule by military junta.

Abe observed the signing of a Memorandum of Understanding at the Thilawa project on the first day of a trip aimed at promotion of Japanese business in a country which desperately needed investment and infrastructure to drive a much-anticipated economic revival.

Set Aung, Myanmar's deputy minister of National Planning and Economic Development said Thilawa SEZ (special economic zone) was a milestone in the relationship between the two governments and the private sector.

He added, this would create quick wins for the people of Myanmar and Japanese businessmen," in terms of jobs and much-needed "technical assistance.''

An environmental impact assessment on the 2,400 hectare project, which would include a port and industrial park, would be completed in August, he said.

In December Japan and Myanmar agreed to start work this year on the Thilawa project with the zone due to be up and running in 2015.