But economic growth in Japan has been virtually stagnant since the early the 1990s. Today, the outlook for growth is even more bleak. 1997 Japanese GDP fell by 0.7 percent. In the first quarter of 1998 Japanese GDP fell by 1.3 percent. The most important contribution Japan can make to the restoration of stability and growth in Asia is to strengthen domestic demand, deregulate its economy, and open up to more imports.
Japan has the only economy with the ability to be an Asian locomotive.
This will also require a bold and determined effort on the part of the new Japanese government. We are encouraged by the recent election results and the candidates for Prime Minister. Although Japan must be the locomotive of Asia's recovery, the United States has a special role to play as the world's largest economy. We must participate in the financial assistance programs and must focus on how to re establish trade credit. Ex-Im, OPIC and TDA are planning a working level mission to Asia to help local companies better understand what is available to them.