TOKYO MEDIA REACTION - GLOBAL ECONOMY

UNCLAS TOKYO 000008 SIPDIS SIPDIS STATE FOR I/RF, PA/PR/FPC/W, IIP/G/EA, EAP/PD, R/MR, EAP/J, EAP/P, PM; USTR FOR PUBLIC AFFAIRS OFFICE; TREASURY FOR OASIA/IMI; SECDEF FOR OASD/PA; CP BUTLER OKINAWA FOR AREA FIELD OFFICE; PACOM HONOLULU FOR PUBLIC DIPLOMACY ADVISOR E.O. 12958: N/A TAGS: OIIP KMDR KPAO JA SUBJECT: TOKYO MEDIA REACTION - GLOBAL ECONOMY ¶1. LEAD STORIES: Top stories on Thursday morning include a plan by the U.S. and Japanese governments to begin as early as this month talks on drawing a roadmap for sharing missile defense intelligence. ¶2. "Uncertainty in U.S. Causing Anxiety" The moderate- conservative Yomiuri editorialized (1/3): "The future of the global economy appears dim. The world economy achieved steady growth at the 5-percent level in real terms in 2007. Although the economies of the U.S., European nations, and Japan slowed down, those of the BRICs - Brazil, Russia, India, and China - maintained double-digit growth and compensated for the floundering economies of the developed nations. According to the forecast by the International Monetary Fund, global economic growth will edge down to the 4-percent level this year due to the expected low level growth of 1 to 2 percent in Japan, Europe, and the U.S. The most pressing concern is a possible stall in the U.S. economy, which became the 'epicenter' of the subprime loan crisis after a housing bubble burst there... Early action should be taken to prevent the subprime loan problem from entering a vicious circle and being prolonged. The success of preventive measures will determine whether the global economy will be put on a stable course." DONOVAN