A new government report said Japan needs a "resilient" economy to overcome new challenges, citing the need to look for ways to curb the coronavirus spread while simultaneously promoting economic activity and implementing reforms to improve the business environment.
With the nation still struggling to contain the pandemic and unable to focus on economic revival, it is vital to build a flexible economy capable of responding to emergencies such as supply chain disruption and climate change, according to the white paper on the economy and finances for fiscal 2021.
At a time when the domestic economy remains "on a recovery phase but its pace is moderate," the annual report said the country needs to address three pressing issues: balancing COVID-19 measures with economic revitalization, strengthening supply chains and promoting business restructuring and labor market liquidity.