Japan Prepares to Enter the Post-Koizumi Era

New York, New York - September 8, 2006 - The Japan External Trade Organization (JETRO) released a newsletter today highlighting challenges to Japan's future growth and development. It can be viewed at:

http:///www.jetro.org/focus

A summary is presented below:

• Japan Prepares to Enter the Post-Koizumi Era

Over the past five years Japan has changed dramatically. This is true not only in economic terms but also in terms of business structure and practices, consumer sentiment, regulatory practices and Japan's receptiveness to foreign participation and investment.

• Japan Needs to Maintain Positive Momentum and Combat Reform Fatigue

Japanese efforts to revitalize and transform its economy have been significant in recent years by almost any measure. This progress is reflected in improving economic data, comprehensive regulatory change and major changes in the way business is conducted in Japan.

• Japan Needs to Address Excessive Government Debt and Fiscal Imbalances

As Japan struggled to reinvigorate its economy throughout the 1990s and early 2000s, attention was focused on initiating programs that could stimulate business and economic activity. This included a wide range of public works projects and emergency loan packages, many of which could not be justified in commercial terms.

During the 1980s and 1990s Japan was often criticized as being overly focused on trade and commercial relationships and its perceived preference for engaging in checkbook diplomacy rather than taking on the responsibilities and obligations normally expected of a country with an economy of Japan's size and importance.

• Whatever the Outcome of the Next Election, Japan is More Prepared to Meet its Future than Ever Before

Irrespective of the outcome of Japan's September election and the Cabinet that it produces, it is clear Japan has moved far past the limitations that prolonged its long struggle to revitalize its economy and to adopt a more market-oriented business and financial environment.

To view the full contents of this newsletter please visit:
http://www.jetro.org/focus

Data, statistics and the reference materials presented within this newsletter have been compiled by JETRO from publicly- released media and research accounts. Although these statements are believed to be reliable, JETRO does not guarantee their accuracy, and any such information should be checked independently by the reader before they are used to make any business or investment decision.

For additional information on economic and financial trends in Japan, please contact:

JETRO New York
Akihiro Tada
Executive Director
email: akihiro_tada@jetro.go.jp
tel./fax +1-212-997-0416/+1-212-997-0464

This material is published and disseminated by JETRO New York, in coordination with KWR International, Inc., New York, NY 10016, Tel: 212-532-3005, Fax: 212-685-2413, E-mail: kwrintl@kwrintl.com. JETRO New York is registered as an agent of the Japan External Trade Organization, Tokyo, Japan and KWR International, Inc. is registered on behalf of JETRO New York. This material is filed with the Department of Justice where the required registration statement is available for public viewing.