Asia Times: Business leaders beg to differ on economy



	January 09, 1999	atimes.com

Japan Economy

Business leaders beg to differ on economy

TOKYO - The leaders of Japan's four major business groups differ in their opinions on the economy.

At a press conference on Tuesday, Takashi Imai, chairman of Keidanren (the Japan Federation of Economic Organizations), and Jiro Nemoto, chairman of Nikkeiren (the Japan Federation of Employers' Associations), both said they believed the economy would begin recovering in the second half of 1999.

''The economy could begin to grow in the second half due to the effect of government economic stimulus measures and if consumption is stimulated by the introduction of new products,'' said Imai, concluding that this year would see the ''dawn'' of economic recovery.

Nemoto called for the introduction of foreign exchange market controls to maintain the stability of the world's three major currencies.

''Fluctuations in the dollar, euro and yen should be contained within certain limits,'' he said.

Jiro Ushio, chairman of the Japan Association of Corporate Executives, was more pessimistic. He expressed strong concern over the yen's sharp appreciation, higher interest rates and lower stock prices.

He also pulled back from an earlier prediction that the economy had ''hit bottom,'' saying: ''There is panic out there due to the yen's appreciation and the earlier-than-expected decline in stock and bond prices. ''If this situation continues, there will be no bottoming out."

Of the yen's rapid appreciation, he said: ''Japan must make her position crystal clear abroad that a strong yen is unfavorable in the short term."

Kosaku Inaba, chairman of the Japan Chamber of Commerce and Industry, recognized in principle that the economy was likely to be better this year than last.

Commenting on recent foreign exchange and stock trends, however, he said: ''While there is a general feeling the matter has been settled [thanks to government economic stimulus measures], market confidence will not be restored if they are not implemented in full."

(Asia Pulse/Nikkei)

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