The State of the Japanese Economy

The Office of the Japan Chair hosted a seminar on the Japanese economy on October 5, 2004. The speaker, Shijuro Ogata, is a former Deputy Governor for International Relations of the Bank of Japan.

Mr. Ogata began by observing that Japan’s economy is finally overcoming the decade-long stagnation. It boasted a 6% real growth over two quarters, with the second quarter showing a slight slowdown. Experts believe that Japan can expect 3.5% real growth for the 2004 fiscal year, though the IMF and OECD have revised this number to 4.4% for this calendar year. He points out that strong external demand and revived corporate activities after restructuring are two factors that contributed to the recovery.