Such thinking again highlights the importance of structural reform, through which resources will be efficiently reallocated and growth potential strengthened. As assumed in the standard scenario, our economy is expected to stop deteriorating led mainly by improved exports and production, but there still remain various structural adjustment pressures. In other words, cyclical factors and structural factors are locked in battle.
I will now address this issue. 2  BIS Review 35/2002  Business cycle and structural problem Cyclical recovery and structural problem Although our economy has followed a daunting road since the 1990s after the bursting of the bubble, there were some periods when the economy expanded.