Ruling party officials expect 2020 Olympics to boost Japan economy

Senior officials of Japan's ruling parties said Sunday the selection of Tokyo as host city of the 2020 Summer Olympics will benefit the country's economy.

Shigeru Ishiba, secretary general of the Liberal Democratic Party, told reporters in Kushiro, Hokkaido, that the Games will "have a great effect" on Japan's economy and that their ripple effect will boost morale.

He called Tokyo's success "an outcome achieved by the whole country and people" and added, "We will strive to be completely prepared to host (the Games) in seven years' time".

"The government and the ruling parties will work together to meet the expectations of Japanese people and the world in terms of safety and financial security," Ishiba said.

The leader of the LDP's coalition partner New Komeito party, Natsuo Yamaguchi, said the Games may prove "a factor" in Japan's emergence from deflation.

Regarding Prime Minister Shinzo Abe's impending decision on raising the consumption tax, Yamaguchi said, "Even if a decision is made to raise the tax, we should overcome and utilize it as an important factor in moving out of deflation".

Yamaguchi pledged to put efforts into improving urban functionality.

"It's important to show the world how we are recovering from the Great East Japan Earthquake," Yamaguchi told reporters at Narita airport before leaving for a visit to the United States.