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A MODEST UPSWING IN JAPANESE SALES.
(From Market - Asia Pacific)
There are signs that the macroeconomic panorama for private sector Japanese consumption is brightening, yet an increasing industrial trend toward moving production and administrative functions offshore will undermine overall private sector demand
Both household and industrial expenditure came back to life during 2003 and modest gains should persist through the first half of 2004. At the household level, several factors work against a strong upsurge in demand for goods and services. Consumer spending accounts for almost 60 percent of Japan's gross domestic product (GDP), so economic growth will be anemic this year. Consumer confidence is unlikely to improve significantly over the upcoming 12 months due to job related concerns. As Japanese industries increase their level of offshore outsourcing, the rate of structural unemployment will remain uncomfortably high.
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