Everybody knows the complexity of successfully managing the Japanese economy under the present circumstances. The unemployment rate is at a historical high of 5.3 percent. The economy, which grew 1.4 percent in fiscal year 1999 and 1.0 percent in 2000, will certainly decline again this fiscal year -- the government has revised its GDP forecast for FY 2001 from 1.7 percent to minus 0.9 percent. And the fallout from Sept. 11 and any terrorism-related incidents thereafter will adversely affect the global economy.
The consumer price index and the wholesale price index have been falling continuously, albeit modestly, and their decline is exerting downward pressure on the economy.
In addition, what are being called structural reforms are under way in various sectors of the economy.