Japanese Economy in 2006 and Beyond: Despite Slow Growth, Record Postwar Expansion Achieved

The Japanese economy achieved high growth rates in 2006, particularly in the corporate sector in the first half of the year. The middle of 2006 brought a slowdown, especially in consumer spending. In general, however, corporate performance held steady, labor supply was tight and the economy overall did not slow significantly. The economic growth phase that began in January 2002 is virtually certain to be statistically verified as having marked its 58th consecutive month in November 2006, making it the longest period of growth in postwar Japan. Although favorable results have been seen in the corporate sector, there was only mild improvement in wages and consumer......