PM Spajić participates in Davos panel: Japan should be Europe’s closest economic partner

The world is facing enormous economic challenges due to significant geopolitical shifts, panelists at a session in Davos agreed. Prime Minister Milojko Spajić participated in the discussion, where Japan took center stage.

Prime Minister Spajić highlighted Japan's consistent ability to address economic challenges effectively.

Japan has always been an island of stability and predictability, no matter how uncertain the times. I deeply admire that. Japan has been a reliable and steadfast partner. Unlike the rest of the world, where inflation is seen as a challenge, Japan is welcoming inflation as it will spark a cycle of significant investments by Japanese companies, Spajić remarked. He opened his remarks in Japanese, which delighted the audience.

The panel noted that Japan's economy is undergoing a transformation after decades of deflation.

Ryosei Akazawa, Japan's Minister for Economic and Fiscal Policy, emphasized the need to foster economic growth and create a sustainable economic system.

We are at a crossroads. We must transition to a growth cycle. While we are still emerging from deflation, managing crises like the COVID-19 pandemic and natural disasters has taught us the importance of sustainability. Our challenge now is to build a new Japan in economic terms, Akazawa stated.

Akazawa emphasized the importance of wage increases to provide economic stability for young people, a critical step in encouraging family formation and addressing the country’s demographic challenges.

We must raise wages to ensure economic stability for young people, making it easier for them to form families. It is my responsibility to find a way to achieve this, and I will succeed, Akazawa pledged.

Prime Minister Spajić echoed the sentiment explaining that Montenegro has implemented similar measures to boost optimism among the youth, including raising both minimum and average wages.

The panel also discussed the potential global economic impact of a new administration in the United States under President Donald Trump.

Trump’s previous term complicated global trade dynamics, but overall trade volumes remained steady, noted Takeshi Hashimoto, President of Mitsui & Co.

China increased trade with Asian nations while they engaged more globally. This reflects a shift rather than a decline in global trade, Hashimoto explained.

Japan is the largest investor in the U.S., yet we maintain extensive economic ties with China. Many of our manufacturing facilities are located there, making China a vital partner. However, we must carefully balance our relationships while safeguarding Japan’s national interests, Hashimoto concluded.