P.M. BRIEFING : Japan Expects Healthy Growth
Japan’s economy will continue to grow at a healthy rate of 3.8% in fiscal 1991 despite the Persian Gulf War because the nation has cut its dependence on oil, the Economic Planning Agency said in a report released today.
Japan has been on a drive to increase energy efficiency and reduce dependency on oil since the first oil shock of 1973.
Largely because of the success of that drive, economists believe Japan can withstand a jump in oil prices that may occur with a protracted war.
The economy will grow on the strength of domestic demand, supported by strong personal consumption and corporate spending on plants and equipment, the report said.
Growth in personal expenditures was expected to increase 6.3% in the coming fiscal year, and corporate spending should be up 7.9%, the report said.
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