Roughly 2% economic growth is expected. Possible negative factors include crude oil price, prices and long term increasing demand for natural resources, and the state of China's and U. S's economies.
Bank of Japan should consult the government in making its decisions. I foresee no immediate raise in long term interest rate if the Bank might alter its course.
Keidanren's position is to increase the Tax to 10% by 2007, and 1% every year afterward, but its feasibility must be studied further on when and how. It must also be necessary for the government to do its utmost to cut its spending before the hike.
There are no meanings in setting an industry-wide goal for pay raise -- each company should decide on its own by considering performance.
Whoever it would be, Koizumi's reform efforts should be continued and expanded. Restructuring the country's economy takes long time, and there are other agenda which needs to be achieved.
It is regrettable that scandals keep occurring. I shall continue asking Keidanren member companies to do everything to avoid recurrence.
Some say that political tension deters economic relationship, but it is not foreseen. However, long term political tension could bring seriousness. As a man of business, I wish that businesses could ease tension in other areas by strengthening bilateral business relationship.