Looking back on the year of 2006, the recovery of the Japanese economy is reality. The BOJ's zero-interest rate policy was lifted in July. The record for the longest business expansion was broken in November. The CPI has been on the increase. Circumstances look toward the end of deflation.
Institutional reform and deregulation have been carried out in the public sector. Private companies have been working hard toward better business performance. Business is brisk all over the world now. The U.S. economy is going out of the current adjustment period next spring. Taking consideration of these positive factors, the 2007 real annual growth rate 2% is attainable.
The Japanese economy is right on the track of recovery. Companies are doing very well. The household economy is picking up gradually. The survey on our member company employees shows that they enjoy increase of summer and winter bonuses two consecutive years.
Each company should decide how much it pays the employees through its own labor-management negotiation. All the companies belonging to a specific industry raised pays and wages at a same rate at the same period of every year in Japan. It is history.