Figures for Japan before 1993 are calculated using year-on-year changes in each item in the 2000 System of National Accounts. 2. Figures for interest income and dividend income in Germany are "other interests, rents" and "distributed income of corporations," respectively. Sources: Cabinet Office; Bureau of Economic Analysis; Statistisches Bundesamt.
Chart 11  Vicious Cycle of Deflation and Virtuous Economic Cycle from Firms' Viewpoint Weak domestic demand Vicious cycle of deflation Weak domestic demand  Shifting of production bases to developing economies  Domestic prices  Virtuous economic cycle to achieve sustainable growth  Growth of overseas economies  Inflow of low-priced goods from developing economies  Prices of imported raw materials External demand  Sales and profits Productivity  Reduction of fixed expenses while maintaining employment due to the lifetime employment practice and seniority-based wages  Consumption  Anxiety for the future  Slow growth in employment Constrained wages  Hoarding of cash and deposits  Further reduction of fixed expenses  If postponed  Sales and profits Productivity  If conducted  Investment  Wages Employment  Realignment of business portfolio Working style reform  Development of attractive and competitive new products and services  Fixed, software, and R&D investments Interest income  Interest rate  Disposable income  Capability to develop new products and services Delay in development of attractive and competitive new products and services  If stagnant  If successful Entry of startups with innovative technology/ business models  Consumption Financial investment  Prices  Chart 12  Share of Exports and Imports in Nominal GDP Exports 25  Imports  %  25  Exports  Imports  Exports of goods  Imports of goods  Exports of services  20  15  10  10  5  5  75  80  85  90  Source: Cabinet Office.