The Improvement in Corporate earnings and Its Implications for the Japanese Economy

Research and Statistics Department
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Research and Statistics Department: Bank of Japan

No 2005-11-10, Bank of Japan Research Papers from Bank of Japan

Abstract: Corporate earnings have been greatly increasing in Japan since FY 2002 as business conditions continue to recover. This ongoing improvement in corporate earnings has the following distinctive characteristics: (a) earnings have risen to a high level across a wide range of industries; (b) fixed expenses were greatly reduced and have subsequently remained suppressed overall; and (c) a gradual decline in prices has been coexisting with increases in both sales and earnings.

Date: 2005-11-10
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