Japan

Article Abstract:

Japan experienced severe economic difficulties in 1998, with gross domestic product likely to have declined by between 2.5% and 3%. The government is coming under strong pressure to undertake a further monetary stimulus, with some observers expressing fears that a deflationary spiral could emerge unless consumers are encouraged to spend more. Investment spending is likely to decline further in the first half of 1999, while external demand will be a negative.

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Japan

Article Abstract:

Japan is likely to see economic growth of around 1% for the whole of 1999. However, there is still a danger of a renewed slump in the Japanese economy in 2000 when the public sector stimulus diminishes. Some observers are concerned that the strengthening of the yen could hamper exports and burden the economic recovery. The prospects for investment spending remain the key to a long-term recovery.

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