The Japanese economy achieved high growth rates in 2006, particularly in the corporate sector in the first half of the year. The middle of 2006 brought a slowdown, especially in consumer spending. In general, however, corporate performance held steady, labor supply was tight and the economy overall did not slow significantly. The economic growth phase that began in January 2002 is virtually certain to be statistically verified as having marked its 58th consecutive month in November 2006, making it the longest period of growth in postwar Japan. Although favorable results have been seen in the corporate sector, there was only mild improvement in wages and consumer | 06-ERC 70L-001AA 17 Japanese Economy in 2006 and Beyond: Despite Slow Growth, Record Postwar Expansion Achieved February 2007 Japanese Economy Division, Economic Research Department JETRO Contents 1. General Indicators: Longest Economic Expansion in Postwar Japan .1 A. Corporate Activity Robust, Although Growth Slows in 2006 Second B. Characteristics of Current Economic Growth 4 C. Issues and Outlook for Japanese Economy 5 2. Trade and Direct Investment: Ties with Emerging Markets A. Exports and Imports Reach High Levels13 B. Trade Trends by Geographic Area (Jan.–Nov.) 13 C. Trade by Product 16 D. International Trade Balance .20 E. Expectations for F. Foreign Direct Investment 21 3. Production: Mining and Manufacturing Output Remain High .27 A. Expansion Continues Despite Uneven .
