Dow Jones - Because the risks of future slowdown (in Japanese growth) are increasing, we can't say that deflationary pressures have receded much. The consensus is that economic growth will decelerate, at least from its (robust) rise in the October-December quarter. Some even say Japan's economy could contract in the coming quarters. That means that the degree of positive GDP gap could get smaller - or it could even get back into negative territory in 2008.
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