However, one major impediment lingers on – the outlook for growth – a hugely important factor for investment – has been revised downwards in recent years. The European Commission projects that, in the absence of further growth-enhancing reforms, the medium-term growth outlook will be no better than 1% per annum.
The US economy is clearly on the rebound, European economies are showing signs of a moderate recovery, and closer to home, East Asian economies have regained their high growth paths after quickly overcoming the adverse impact of SARS. Increasing interdependence between the United States, East Asian countries and Japan is one of the keys to achieving sustainable growth in Japan.