Abe to brief G-8 leaders on Japan's economic policies

Prime Minister Shinzo Abe said Monday he will explain Japan's economic policies aimed at beating chronic deflation when he meets with his Group of Eight counterparts at their summit later this month.

"I want to explain that the Japanese economy will contribute to recovery in the world economy," Abe told a meeting with Natsuo Yamaguchi, who heads the New Komeito party, the junior coalition partner of his Liberal Democratic Party.

Abe is likely to brief other G-8 leaders on his so-called "Abenomics" policies, such as flexible budgetary spending and bolder monetary easing by the Bank of Japan, when they hold annual talks on June 17 and 18 in Britain. The group also involves Canada, France, Germany, Italy, Russia and the United States.

Abe also told Yamaguchi that the government wants to work out later this year additional steps to stimulate Japan's growth, asking for cooperation from the coalition partner.

"I want to draw up a second growth strategy in this fall, focusing on thorough tax reduction to boost corporate capital spending," Abe said.

The premier last week unveiled the latest part of his first full-fledged growth strategy since taking office in December, featuring deregulation measures to increase business investment.

But it did not involve specific tax easing, falling short of market expectations and triggering a sell-off in Tokyo stocks.

The first set of measures, another core piece of Abenomics, will be approved by his Cabinet later this week.