With a few notable exceptions, GDP was negative across East Asia last year and is not expected to improve greatly in 1999. Unemployment has increased dramatically in the region. Japan, Singapore and Hong Kong all can expect flat to slightly falling prices in 1999, but only Japan displays even early signs of serious deflation. The population is growing all the time, which is why unemployment and employment can both be increasing at once. It would be a real problem if employment were also falling.
Japan has a serious problem.
Both the speculators that forced currency devaluations and the IMF's original cure of compelling governments to produce austerity budgets deserve some blame. But there are other problems like a serious unwillingness to change entrenched business practices that contribute to reduced consumer confidence. All Rights Reserved. Terms under which this service is provided to you. Read our privacy guidelines .