Executive Summary
Assessment and Recommendations
Chapter 1. Key Challenges to Sustaining the Expansion in Japan
-Recent Economic Trends in Japan and the Short-Term Economic Outlook
-The Polarisation of this Economic Expansion Poses Risks
-Key Challenges Facing the Japanese Economy
-Conclusion
-Annex 1.A1. Taking Stock of Structural Reforms
Chapter 2. Bringing an End to Deflation under the New Monetary Policy Framework
-Monetary Policy Since the End of Quantitative Easing
-The Direction of Monetary Policy
-Monetary Policy in the Light of Longer-Term Risks
-Conclusion
Chapter 3. Achieving Progress on Fiscal Consolidation by Controlling Government Expenditures
-How Much Progress has Japan Made in Addressing its Fiscal Problem?
-The Government’s Medium-Term Fiscal Plan
-Continuing the Downward Trend in Government Spending
-Conclusion: Additional Revenues are Needed to Achieve Japan’s Medium-Term Fiscal Objectives
-Annex 3.A1. "Growth Scenario" and "Risk Scenario" of the 2008 Reference Projection
Chapter 4. Reforming the Tax System to Promote Fiscal Sustainability and Economic Growth
-Major Challenges Facing the Japanese Tax System
-Analysis of the Major Taxes in Japan
-Directions for Tax Reform
Chapter 5. Enhancing the Productivity of the Service Sector in Japan
-The Role of the Service Sector in the Japanese Economy
-Factors Hindering the Growth of the Service Sector
-Polices to Promote Higher Productivity in the Service Sector
-Selected Issues at the Sectoral Level
Chapter 6. Reforming the Labour Market to Cope with Increasing Dualism and Population Ageing
-Falling Wages and Labour Market Dualism
-Ensuring Adequate Vocational Training in Japan
-Coping with Rapid Population Ageing