Japan can accelerate growth with digital overhaul
2022-06-13 07:36:48
#Accelerate#Digitize#ReformJapan is lagging behind Organisation for Economic Co-operation and Development (OECD) countries in its economic recovery from the pandemic, but it has been pointed out that this is due to delays in digital technology. Productivity is said to have fallen due to the delayed introduction of remote work.
◆ Delayed digitization is a "structural weakness"According to an analysis released by the International Monetary Fund (IMF, June 1), “Japan’s digitalization can provide impetus for economic recovery.” It was pointed out that Japan has experienced delays in the digitalization process in multiple sectors, and "the epidemic has shown Japan's inequality in technology introduction". Specifically, the commercial sector's reliance on legacy IT systems is evident, and the government and financial sectors are also lagging behind economic zones outside Japan in terms of digitization. The IMF said the delay in responding to remote work during the pandemic has exposed this "structural weakness" and "decreased productivity at a critical moment".
The OECD made a similar point in a blog post (21 December 2021). According to the analysis, "the imperfections of the digital reform have been highlighted" as the transition to remote work has not progressed smoothly. In a press release (December 3, 2021), he noted that the recovery in real GDP since the COVID-19 pandemic has been delayed compared to other OECD countries and remains below 2019 levels.
◆ Delayed digitization is a "structural weakness"According to an analysis released by the International Monetary Fund (IMF, June 1), “Japan’s digitalization can provide impetus for economic recovery.” It was pointed out that Japan has experienced delays in the digitalization process in multiple sectors, and "the epidemic has shown Japan's inequality in technology introduction". Specifically, the commercial sector's reliance on legacy IT systems is evident, and the government and financial sectors are also lagging behind economic zones outside Japan in terms of digitization. The IMF said the delay in responding to remote work during the pandemic has exposed this "structural weakness" and "decreased productivity at a critical moment".
The OECD made a similar point in a blog post (21 December 2021). According to the analysis, "the imperfections of the digital reform have been highlighted" as the transition to remote work has not progressed smoothly. In a press release (December 3, 2021), he noted that the recovery in real GDP since the COVID-19 pandemic has been delayed compared to other OECD countries and remains below 2019 levels.
