Dec 7, 2010
| Last Updated
- Japan is poised for another slowdown as consumer subsidies eat into future
demand then expire at the end of 2010.
- With inventory rebuilding having run its course and developed markets
undergoing balance sheet adjustments, Asia’s underlying structural demand for
raw materials and capital goods will determine the pace of Japanese exports and
- Budgetary stalemate will prevent discussion of regulatory reforms to enhance
services-sector productivity and halt Japan’s multidecade death spiral.
Growth Dynamics: Running on Reserves
Fiscal stimulus and inventory rebuilding ignited Japan’s recovery in 2010,
with annual GDP growth reaching an estimated
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