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Ministerial Meeting on Economic Measures Monday, December 19, 2005 JAPANESE The Ministerial Meeting on Economic Measures was held at the Prime Minister's Official Residence. The "Economic Outlook for FY2006 and Basic Economic and Fiscal Management Measures" was adopted at the meeting and approved at the extraordinary Cabinet meeting. The report outlines the following: i) main economic indicators for FY2005 and FY2006; ii) economic trend in FY2005 and economic outlook for FY2006; and iii) basic economic and fiscal management measures for FY2006. In regard to the economic outlook for FY2006, the report estimates the growth rate of real GDP to be approximately 1.9% (with the growth rate of nominal GDP at approximately 2.0%) and explains that the Japanese economy "is expected to continue its gradual recovery centered on private sector led demand." Furthermore, in regard to the basic economic and fiscal management measures for FY2006, the report states that "the Government will realize a 'small and efficient government' through such measures as opening up to the private sector and regulatory reform by way of steady implementation of the privatization of the postal services; reform of the policy finance, total personnel cost, and asset and debt; and Market Testing. The Government will also boldly push forward the structural reforms in each area, including the promotion of reform in the area of regulation, financial system, tax system, and government expenditures."