OECD sees robust growth for Japan through 2007

0 Comments | AFP, May, 2006

PARIS (AFP) — Japan's economy is well on track for its longest post-war expansion with robust growth expected through 2007 but the central bank must not be too hasty in raising interest rates, the OECD has said.

Japan has largely overcome its post-bubble problems and deflation is gradually fading although the government still has much work to do to reduce the huge national debt, the Paris-based grouping of the world's top 30 industrialised countries said.

Asia's largest economy is set to grow 2.8 percent in 2006 and 2.2 percent in 2007 as strong domestic demand powers the recovery, according to the Organisation for Economic Cooperation and Development's outlook report.

"The current expansion, which began in 2002, is on track to become the longest in Japan's...