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Japan must raise productivity through labour market reforms in order to grow its economy at a time when population is declining, Prime Minister Shinzo Abe said in London on Thursday. In an answer to a question by Bank of England Deputy Governor Andrew Bailey, Abe said “Japan’s population is declining. In order to grow, we must raise productivity … We need to reform labour regulation in order to make working conditions more flexible. Over the past year we’ve realised how difficult it has been to do so. But we cannot grow without labour reforms. We are determined to make that happen.”

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