If the political relations between Japan and South Korea remain tense, not only the neighboring countries but also the whole Asia will risk future development and prosperity. It is necessary to improve the Japan-ROK bilateral relations and fasten its ties through the summit meeting where the leaders of the two nations will have a dialogue for the first time. It is a step forward in the right direction. It should be followed by further efforts of the government and the private sector.
Impact of the Consumption Tax Hike
The government has revised up Japan's GDP growth forecast for the April-June period slightly expecting the effect of its unveiled stimulus package. The Japanese economy will be sustained by the 5-trillion yen "economic measures for the realization of a positive cycle of the economy" as well as a tax reduction of about 1 trillion yen. If a growth strategy which will take shape in June, and the new fiscal year's budget are effectively carried out, there will be no worry about impact of the upcoming consumption tax hike on the economy.