It is also necessary to note, with regard to the implication for the economy, that the permanent tax reduction for individuals and corporations made by the national and local government totaling substantially more than 6 trillion yen will continue in FY2000. A relating bill was approved on the Diet on May 24, 2000. With the recognition that it is important to achieve both the full-fledged recovery and the structural reform, the reforming measures have been steadily implemented including reforms of corporate regulations, promotion of SMEs and venture business, activation of the technical development, deregulations to rectify the high cost structures. Although the Japanese economy has not yet got out of the severe situation, activities continue to improve moderately. In addition to the influence of various policy measures and of the Asian economic recovery, there are movements, mainly in the corporate sector, gradually growing towards autonomous recovery.
Personal consumption remains broadly flat while the decrease in income is coming to an end.
The level of housing investment is stable as a whole with bullish condominium construction. The recovery in investment in plant and equipment has become clear. As for the balance of international payments, surpluses registered in the trade and service account remained at almost the same level as a trend. The employment situation remains severe, with the unemployment ratio staying at a high level, despite improvements such as continued increases in overtime hours worked and in job offers.