The decade of the '90s has been much more of a stuggle. GDP growth hit a low of -2.8 percent in 1998 as export business was badly hurt by Asia's financial troubles. Also, the domestic consumption picture is not pretty. In the 1980s, Japanese private consumption growth averaged a robust 4 percent annually, according to OECD figures, but it has declined to an annual growth rate of 1.4 percent during the 1990s.
Domestic savings are at a record high.
Unlike Americans, the Japanese consumer stops spending when things look bad. This money is mostly put into postal savings accounts. The 1999 Japanese household savings rate will come in at 13.1 percent of household income. In stark contrast, the 1999 U.S. household savings rate is projected by OECD at -0.8 percent. There are a few exceptions.