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JAPAN: Japan’s economic growth eased to an...

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From Times Staff and Wire Reports

JAPAN: Japan’s economic growth eased to an annualized rate of 2.1% in the final quarter of 1990, the government reported. The Economic Planning Agency said the economy grew 0.5% in the quarter ended Dec. 31, compared to 1% growth for the preceding quarter. An Economic Planning Agency official said the slowdown was mainly due to the relatively high interest rates in Japan. The Bank of Japan increased interest rates beginning in mid-1989 to stamp out inflation as the economy started to overheat. The intentional slowdown has given economists reason to believe that the economy will come back once the Bank of Japan determines that inflation is no longer a threat and lowers interest rates.

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