The Japanese government, confident of the recovery of Japan's economy, decided yesterday against any new measures to cut its highly criticized surplus of current account.
At the same time, the government decided to ask other countries, mainly the United States, to restrain inflation which spurs the imbalance of international account.
The conclusion came at the Ministerial Council on Economic Policy this evening. An official document issued after the meeting boasted that: "Our economy is in good shape in every aspect. We are exerting our utmost effort to achieve the 7 percent economic growth target for fiscal 1978."
According to government figures, the economic growth for the first three months of 1978, reached to 2.4 percent. "I do not think that necessarily means that the annual rate will reach nearly 10 percent but it is definite we are marching on the 7 percent growth route," said Prime Minister Takeo Fukuda last Monday to the foreign press.
Today's government report says industrial production, producers shipments and housing construction increased fairly well from the beginning of this year. Meanwhile the consumer prices stayed at about 4 percent up. "Japan is ahead of the advanced countries which tried to shake off the oil shock. Ours is number one in the world," said Fukuda recently.
The main reason for recovery is due to enormous government investments in public works, the report said.
But the current surplus which reached $14 billion in fiscal 1977, seems to show no signs of reduction. In April, it was $1.2 billion and in May, $1.4 billion. The government target of reducing the surplus to $6 billion in fiscal 1978 is being viewed skeptically by many observers here.