As the above indicates, there are continued negative interactions of production, income, and expenditure. Given the current considerably low level of economic activities, the economy is unlikely to transit immediately to a self-sustained recovery led by private demand, although a further deterioration in the economy is expected to cease gradually from the effects of the comprehensive economic stimulus package.
Additionally, attention should be paid to possible negative effects on the real economy from financial developments including the recent fall in stock prices. In these circumstances, the cabinet approved a guideline on budget requests by ministries for fiscal 1999.