The Japanese Economy Today

Press, 26 September 1988, Page 16

The Japanese Economy Today

After the stockmarket crash, Japan is shifting from recovery into expansion. While net exports have been declining because of the high value of the yen, domestic demand continues to grow through Japan’s huge domestic market. Home sales have rescued the Japanese electronics industry from increasing international competition. Industrial production is increasing, while employment is improving generally. Japan’s gross national product in the 1988 financial year is expected to amount to about 365.2 trillion yen, with a growth rate of 3.8 per cent. Plans could include radical measures such as decentralisation, possibly calling for the capital to be shifted from Tokyo to another centre on the island of Honshu. Restructuring of agriculture may help to lower high food costs. Japanese people need time out for their hectic urban life styles. Oxygen rooms are havens for city dwellers escaping polluted streets. Overseas trips to uncrowded nations

such as New Zealand are popular with Japanese tourists. The Japanese Government’s policies encourage price stability at home and work towards maintaining and strengthening free trade "... to establish harmonious external economic relations, and to contribute actively to the vitalisation of the world economy.” A lowering of the quality of life is often a cost of rapid industrial expansion, in terms of pollution and fewer leisure and recreational pursuits. Prime Minister Nobofu Takeshita is concerned about improving the quality of life in Japan. His Government’s plans look towards improving living standards, providing more leisue and making an even greater contribution to the global economy.

ACKNOWLEDGEMENT: We are grateful to Mrs Marie Mcßae and Alice Vincent for assistance with this page.