ADB chief Kuroda concerned about Japan's deflation

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MANILA, March 30 Kyodo -
Asian Development Bank President Haruhiko Kuroda has expressed concern about
Japan's deflation at a time when other Asian economies are recovering ahead of
the United States and European countries.
''The problem is that Japan alone is plagued by deflation, which leads people
to defer consumption,'' Kuroda said in a recent interview with Kyodo News
before an ADB annual general meeting in Uzbekistan in May.
He also said Japan should restore fiscal health in order to maintain social
security for its rapidly aging population.
Kuroda, a former Japanese vice finance minister for international affairs, said
Asian countries are likely to record higher economic growth in 2010 than in
2008.
''But Asian countries are required to transform their export-oriented economies
into domestic demand-driven ones to continue high growth,'' he said. ''China
should stimulate consumption, while Southeast Asian nations should promote
investment. India will have to stimulate investment and savings.''
Kuroda, 65, said the Mekong Basin development project has achieved the fastest
progress among ADB-backed economic integration programs.
The ADB will focus in the future on supporting soft infrastructure development,
including the harmonization of customs clearance procedures, in addition to
hard infrastructure development such as road construction, he said.
==Kyodo
2010-03-30 22:36:34