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Outlook for Fiscal 2006: December 2005
Bipolarization to Proceed as the Economy Recovers Gradually

Summary

Overview

The Japanese Economy in Fiscal 2006: Bipolarization to Proceed as the Economy Recovers Gradually

1. Current State of the Economy

2. Outlook for 2006

a. Emergence of a Prolonged Period of Recovery

b. Gradual Recovery Will Continue

c. Responding to the "Escape from Deflation" Will Be an Issue

d. Bipolarization Proceeding as the Recovery Continues

3. Risk Factors

a. Trends in the World Economy (Upside and Downside Risks for the Economy)

b. Increases in Crude Oil Prices (Downside Risk for the Economy)

c. Higher Interest Rates (Downside Risk for the Economy)

2. Forecasts from the Perspective of Economic Sectors

a. Corporate Sector

b. Household Sector

c. Government Sector

d. External Sector

3. Outlook for Prices and Financial Markets

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