The Medium-Term Forecast for Japanese Industry
and the Challenges it Must Face:

Improving Japan's Quality of Life and Ensuring Full Employment Through Structural Economic Reform

Table 1.
Macroeconomic Environment


(A) The Desirable Scenario (Annual Average Values, %)

1995 - 2010
Real Economic Growth RateApprox. 2.5% to 3.2.%
Consumer PriceApprox. 1.0%
Unemployment RateFrom 3.5% to approx. 2.0%
Current Balance
(as ratio of GDP)
From 2.5% to approx. 1%
Yen Exchange RateStable at approx. 100 yen/ $1.00

(B) The Status Quo Scenario (Annual Average Values, %)

1995 - 2010
Real Economic Growth RateFrom 0.5% to under 2%
Consumer PriceFrom 0.5% to 1.0%
Unemployment RateFrom mid 3% to 4%
Current Balance
(as ratio of GDP)
From 2.0% to -0.5%
Yen Exchange RateAfter sharp rise, will fall
due to loss of competitiveness


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