Following is the gist of remarks made by Mr. Takashi Imai, Chairman, Keidanren, at a press conference following monthly Chairman and Vice Chairmen's meeting on 11 March 2002. Translation is rush and tentative, and sequence of the gist does not necessarily coincide with words delivered.
(Asked of his views over "triple highs")
February 27 announced anti-deflation measures of the government and February 28 Bank of Japan measures to increase financial liquidity further, combined, brought a positive effect on the stock market, which in turn eliminated sell Japan sentiment in the bond market, and brought appreciation of the Yen. I think this is what media call of "triple highs" and I believe it is good for the Japanese economy. This expanded total stock value by six billion yen, added 200 on TOPIX, and 2,500 yen on Nikkei average over the low recorded on February 6. All this has changed the direction of the outlook over Japanese economy -- the March crisis once called for has become things of past -- as appreciated stock prices will have a very good effect on corporate accounting which will close at the end of March.
(Asked of his views over current state of Japanese economy)
The real economy kept contracting in the fourth quarter 2001. Corporate facilities investment remains very low even though consumer spending showed a little brighter sign. If the first quarter of 2002 will be zero growth, the accumulated growth for fiscal 2001 will be -1.4%. As facilities investment is not expected to come back in near future, the real economy will also need more time before making a come back. To make sure that Japanese economy won't falter again, business should work hard at restructuring and the government should pass and execute the next fiscal year budget flawlessly.
(Asked of his views over recent Diet scandals)
I am not following the issue enough to provide a full comment, but the public opinion makes me feel that the ruling coalition and concerned Diet member should weigh the both positive and negative direction of public opinion before making the final decision.