In the wake of the distinct growth slump in the second quarter, growth expectations for 2008 have clouded over further. The sluggish development in private consumption remains a major point of weakness. Stable export performance should continue to provide impetus.

The economy in Japan also got off to a surprisingly strong start to2008. However, a growing number of indicators already point to aloss of economic steam this quarter. Given the prevailing economic risks, the Bank of Japan is likely to keep interest rates low in 2008 despite higher prices.

After the pickup in momentum seen at the end of 2007, economic growth looks set to be no more than sluggish in the first half of this year. Private consumption is still struggling to take off. Although prices have risen, the Bank of Japan is likely to keep interest rates low in 2008 given the prevailing economic risks.

Following disappointing economic development in the second quarter, strong impetus from foreign trade is pointing towards accelerated growth momentum again. Furthermore, the TANKAN report suggests that the upward economic trend remains intact. But the Bank of Japan is likely to remain on hold for the time being.

After the economy proved to be surprisingly robust in the first quarter, the most recent indicators suggest that momentum slowed in the second. All in all, however, the Tankan survey points to acontinued upward trend. This should prompt the Japanese centralbank to normalize its interest rate policy further in the second half of the year.

Some of the latest economic indicators point towards a slowdown in momentum in the first quarter. The current TANKAN report, on the other hand, suggests a continued economic upturn. Meanwhile, inflation remains close to zero. The Bank of Japan is therefore likely to bide its time before continuing with the normalization of its monetary policy.

The Japanese economy is likely to achieve 2 % growth in 2007. Although the basis for private consumption should improve, the drag from the ongoing consolidation of public-sector budgets will remain.

The pace of growth slowed considerably in the second quarter due to a raft of negative factors. Despite a weak start, we expect a more positive trend to emerge over the course of the current quarter.

The Japanese economy continues to expand, driven primarily by business investment. Key interest rates could stand at 0.5 % by the end of the year.

The economy continues to record solid growth. In the short-term, an inventory drawdown in the industrial sector could slow momentum. The Bank of Japan, which is striving to normalize monetary policy, recently placed renewed emphasis on the significance of longer-term risks for sustained and solid economic growth.

Introduction: After a very strong final quarter in 2005, economic momentum slowed markedly in the first three months of this year. But the upward trend in the Japanese economy remains intact. We hold to our forecast of 2 3/4 % annual average growth in 2006.

Economic momentum probably slowed in the first quarter of 2006. Nevertheless, the fact that the demand for loans appears buoyant means that domestic demand is likely to pick up again. The Bank of Japan’s economic projections reinforce the scenario of a gradual normalization of monetary policy.

The latest business survey by the Bank of Japan points to ongoing solid expansion in domestic demand, confirming our forecast of increasing company recruitment needs. Selling pressure is likely to continue on the bond market.

The prospects for continued solid economic recovery are set fair. Private consumption is likely to benefit from further improvement in the labor market situation. An initial interest rate hike by the Bank of Japan is expected for the end of the year.

Japan’s economy clearly moved up a gear at the end of 2005, and the portents for a continuation of this solid recovery are good. With the credit creation process regaining momentum and the long-standing consumer price deflation set to be overcome, an end to the quantitative easing policy is on the cards soon.

Despite the burden arising from the consolidation of public-sector budgets, Japan’s solid economic growth is set to continue this year. Extremely accommodative monetary policy offers potential for a repeat of the above-average growth seen in business investment.

The Japanese economy continues to grow. In particular, industrial production, which has so far been disappointing, is on the mend. Despite economic policy tensions with regard to future monetary policy, we expect sustained upward correction in long-term interest rates.

The credit creation process seems to be getting back into gear after years in the doldrums. More favorable financing conditions are encouraging an increase in investment by small and medium-sized companies. The Bank of Japan’s economic forecasts reinforce signals for a normalization of monetary policy in the coming fiscal year.

The Japanese economy continued its solid growth through the second quarter. The weakness of key economic indicators at the start of the third quarter should prove to be temporary. In all, average growth of around 1 3 /4 % seems likely for the year.

Following rejection of government plans to privatize the postal system, it is likely that elections will be brought forward to September. But the next government is not likely to deviate from the current course of economic policy.