investment sluggish wages equipment, human capital, r & d, marketing, etc. improvement in capacity for raising wages improvement in capacity for investment structural wage hikes equipment, human capital, r & d, marketing, etc. expansion of investment investment restraint decline in employee engagement boosting of employee engagement lack of management resources sluggish consumer appetite for spending increase in consumers'appetite for spending decline in growth expectations strengthening of management resources enhancement of customer satisfaction decline in capacity for raising wages rise in growth expectations increase in productivity and innovation capacity decline in productivity and innovation capacity price competition and sluggish sales increase in the value of employees and products, etc. and expansion of sales decline in earning power and sluggish business performance strengthening of earning power and sustainable growth sluggish tax revenue and concern about sustainability of the social security system increase in tax revenue and improvement in sustainability of the social security system chart 17 comparison of average annual wages in g7 countries 10 thous. usd, constant prices, 2022 ppps japan united states canada united kingdom germany france italy cy 91 note : average annual wages in full - time equivalent. source : oecd. chart 18 annual pay comparison with asian economies ( as of 2023 ) thous. usd japan ( japanese firms ) china ( beijing ) south korea thailand vietnam singapore senior manager in a large firm manager in a large firm position class notes : 1. the horizontal axis shows the level of the position class as defined by mercer. position classes below the executive level at large firms are shown in this chart. the further to the right, the higher the position class. 2. figures include incentives paid for 100 percent achievement of performance targets and are the medians for each position class. source : mercer, 2023 total remuneration survey. chart 19 startups startup funding in japan : total value and number of firms funded 1. 2 tril. yen thous. firms gdp size and number of unicorns 5 30 tril. usd number 1, 000 10 tril. usd total value of deals ( left scale ) nominal gdp in 2023 ( left scale ) number of firms funded ( right scale ) 1. 0 number number of unicorns ( right scale ) 0. 8 0. 6 0. 4 government target ： 10 trillion yen in fy 2027 0. 2 0. 0 cy 14 united states china japan germany india united kingdom france notes : 1. in the left panel, the total value of deals is defined as follows : for un

in investment to increase dividend income from listed firms that drive economic growth. these developments suggest that a household dynamism is emerging ( chart 22 ). while it is important for households to understand the risks associated with such investment, i think that, if they have the financial capacity, efforts to shift from saving to investing - - provided it focuses on the long term, regular contributions, and risk diversification - - as well as continued efforts by households to expand their sources of income through increased dividend income are a key element of economic growth. i believe that these efforts can help to increase household wealth, including that of seniors, through economic growth ( charts 8 and 10 ). i will pay close attention to changes in the composition of household financial assets and disposable income amid rising inflation expectations. however, if households increasingly accumulate financial assets because they are worried about the future and want to save for retirement, this may lead to a shift from consumption to investment, which may make households thriftier. therefore, it is essential that asset formation by households strike the right balance between managing assets for retirement and generating income for the present. for this reason, i have high hopes for the educational outreach of the japan financial literacy and education corporation ( j - flec ), established in april 2024, to promote a better understanding regarding the balance between consumption, savings, and investment. thank you. economic activity, prices, and monetary policy in japan speech at a meeting with local leaders in sapporo june 6, 2024 nakamura toyoaki member of the policy board bank of japan chart 1 imf projections in the world economic outlook ( april 2024 ) y / y % chg. imf projections - 2 - 4 japan united states euro area - 6 china india world output - 8 cy 80 source : imf. chart 2 household disposable income breakdown and saving rates japan united states tril. yen % other ( left scale ) social insurance premiums ( left scale ) income tax ( left scale ) operating surplus and mixed income ( left scale ) social security benefits ( left scale ) property income ( left scale ) compensation of employees ( left scale ) saving rate ( right scale ) tril. usd % other ( left scale ) personal current transfer receipts ( left scale ) contributions for government social insurance ( left scale ) personal current taxes ( left scale ) personal income receipts on assets ( left scale ) compensation of employees ( left scale ) saving rate ( right scale ) - 4 -