The banking crisis in the 1990s and unresolved structural problems still weigh heavily on the Japanese economy. The world economy today finds itself in a state of heightened uncertainty. The events in New York and Washington have undermined the confidence of both businesses and consumers.
The extent and the duration of the military encounter as well as the extent of the anthrax incidents will determine the level of confidence among consumers and businesses in the coming months. Part of the current uncertainty lies in the fact that indicators refer to the period before the watershed date 11 September.