Economic growth Unlike developed countries, where economic growth is now constrained by the limits to productivity growth, Asian countries will continue to exhibit high rates of growth for some time to come. First, as incomes grow, India, Indonesia, and others will continue to exhibit high savings rates.
However, because Japanese financial institutions have sufficient capital bases, the Bank judges that there is no critical problem at this point in the functioning of financial intermediation due to a deterioration in profits. This is also evidenced by financial institutions' continued proactive lending attitudes (Chart 12).