TOKYO (Reuters) – Asia must accelerate digitalisation and business reform to tackle challenges to achieve sustainable growth, Bank of Japan Governor Haruhiko Kuroda said on Wednesday, highlighting vulnerabilities in supply chains and social infrastructure.
Kuroda said Asia’s economic conditions remain severe as a full-fledged recovery in global growth following the COVID-19 pandemic appears to be “much further down the road”.
But the downturn in Asia’s economy has been moderate compared with other regions due partly to solid global demand for IT-related goods produced in the region, he said.
“From a longer-term perspective, Asia must address its challenges in order to achieve sustainable economic growth” such as its low service-sector productivity and ageing populations, Kuroda said. Digitalisation is among key factors in this, he added.
“Japan is one of the most rapidly ageing societies and we have been discussing how to tackle the problems arising from an ageing society,” Kuroda said.