These disputes led to escalating tariffs and pervasive uncertainty about global policy. Bank researchers estimated that these factors combined would reduce global output by more than 1 percent—that’s more than $ trillion—by the end of 2021.2 In this environment, it’s no wonder companies were reluctant to invest to expand their export capacity.
Strengthening Japan's Economic Growth Potential with an Eye on the Post-COVID-19 Era  Low Growth After the Crises  CY 1990 = 100  140  Advanced Economies (After the GFC)  Japan (After the Financial Crisis in the 1990s )  Japan (After the Bubble Economy) 120  CY 1997 = 100  120  120  110  110  100  100  100  80  90  90  Real GDP  Real GDP  60  Real GDP  80  87  89  91  93  80  Trend line for 5 years prior to the crisis  Trend line for 5 years prior to the crisis 40 CY85  CY 2007 = 100  70 CY92  95  94  96  98  00  Trend line for 5 years prior to the crisis 70 CY02  02  04  06  08  10  12  9  Source: IMF.