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2005 OECD Economic Surveys: Japan 2005

image of OECD Economic Surveys: Japan 2005

OECD's 2005 Economic Survey of Japan analyses whether Japan can sustain its economic expansion. It carefully looks at Japan's fiscal problems and related to that, the relationship between different levels of governments. It also reviews the problem of Japan's shrinking working-age population. The special report examines how Japan gets the most out of public sector decentralisation.

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Achieving Fiscal Sustainability

This chapter discusses the deterioration in the fiscal situation and measures needed to restore fiscal sustainability in the light of future pressures for increased spending, notably from rising interest payments and the social security system. The government’s Medium-Term Economic and Fiscal Perspective should be improved to meet these challenges. Preventing a hike in the risk premium calls for a more credible...

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