Fri, 14 Jan 2000

The global economy

The global economy entered the year 2000 amid a glow of optimism not witnessed in the recent past.

More than two years have passed since the Asian currency crisis. Countries in East Asia have displayed a faster-than- expected recovery.

Latin American countries and Russia, which also succumbed to long, chaotic economic crises, are now emerging from its worst effects. The current period of U.S. expansion is about to equal that of the longest on record in the postwar era, while Japan and European nations seem likely to enter their respective recovery phases.

However, the glow of optimism is not yet justified. Many countries are riding on a wave of rapid information technology revolution and globalization. But they still have many hurdles to overcome.

For the global economy as a whole to realize well-balanced, stable growth, each nation and region should make the utmost effort to solve its own problems. At the same time, the international economic system must undergo drastic changes. Japan will play host to the annual summit of the Group of Eight major nations in Nago, Okinawa prefecture (state) in the summer of this year. As the host nation, Japan must contribute by sending a message to the G-8 for on the dawning of a new horizon for the global economy.

-- Yomiuri Shimbun, Tokyo