Japan economy needs AI, robots to offset aging population: white paper - The Mainichi

Japan's aging population will require more investment in technology such as artificial intelligence and robots to make up for a decline in the labor force for economic growth, according to a government report released Friday. The world's third-largest economy is on firm footing, having enjoyed a moderate recovery for the past five and a half years under Prime Minister Shinzo Abe's policies including aggressive monetary easing by the Bank of Japan. "Corporate profits are at record highs, labor and income conditions are improving, and increased income is leading to an expansion in consumption and investment, showing that a'virtuous economic cycle' is beginning to take hold," said the annual white paper on the economy and fiscal policy. But the report warned that the country is also experiencing the worst labor shortage in a quarter century, and some industries such as transportation services and construction may already be seeing earnings suffer as a result. "Amid an aging population, (Japan) needs to drastically strengthen the supply side of the economy in order to deal with the labor shortage and realize sustainable growth," it said.