Government predicts "zero economic growth" for fiscal 2002

The government on December 19 announced that it expects a zero percent
growth in Japan's gross domestic product (GDP) in real terms and minus 0.9
percent in nominal terms for the fiscal year 2002. This is the lowest-ever
prediction for economic growth.

On the employment outlook, the government expects that the unemployment
rate will increase further to mark 5.6 percent on average. Taking into
consideration that bad loans disposal will cause more corporate bankruptcies
and unemployment, the government stated that the severe employment situation
and falling income will continue under "structural reform" programs.

On the government forecast of the fiscal 2002 economic growth, the first
under the Koizumi Cabinet, Akahata on December 20 said that this is
tantamount to declaring that it will bring about a fathomless economic
recession at the sacrifice of the people's living conditions.

The government forecast of "zero growth" counts on an early recovery of
the U.S. economy and increased government expenditure in order to avoid a
negative growth figure, Akahata pointed out.

Akahata criticized the Koizumi Cabinet for being very cold-hearted toward
the people, pointing out that despite knowing about further increases in the
unemployment rate, it doesn't hesitate at all to push ahead with "structural
reforms."

Warning that all that will follow structural reforms will be the
destruction of the people's living conditions, Akahata stated that it's
necessary to fight against the Koizumi "reform," otherwise Japan's economy
can't recover. (end)