Japan's Abe pledges revamp of economic program

Abe announced a new stage in his much-hyped economic program, dubbed "Abenomics," at a televised news conference on Thursday, in what many observers see as an effort to assuage frustration over divisive new security legislation passed last week.

"From this very day, Abenomics is entering the second stage," Abe said, referring to the economic reforms that have been a key pillar of his administration since he took office in 2012. He said his new goal was to reach a GDP target of 600 trillion yen ($5 trillion, 4.4 trillion euros) - but did not set a timeframe for this goal. The target figure would represent a 22-percent increase from the previous financial year.

The press conference came a week after Abe pushed through legislation enabling the Japanese military to participate in combat that is not strictly for self-defense. Called the “collective defense law,” the legislation led to massive street protests, as well as a small dip in the prime minister's ratings.

Speaking to reporters, Abe sought to promote a vision of a brighter future for Japan. "Tomorrow will definitely be better than today!" he said.

The new phase of Abenomics consists of three "arrows:" a strong economy, support for child rearing and various social reforms, all of which are meant to pump life into a moribund economy that has seen a stagnant inflation rate and little growth.

Though Abe asserts his economic plan will lead to improved livelihoods for his people, some experts, such as Masamichi Adachi of JPMorgan in Tokyo, seemed skeptical.

"There's nothing wrong with him saying he wants to achieve a better life for everybody. But how to achieve it is a different matter," Masamichi told the Associated Press.

Citing the country's weak economy and low inflation, international ratings agency Standard & Poor's downgraded Japan's sovereign credit rating by one notch, from AA- to A+, placing the country below China and South Korea.

blc/msh (AP, AFP, Reuters)