The Japanese government launched a number of policies to expand domestic demand and open domestic markets to foreign businesses, let its currency appreciate, provided tax credit incentives for imports, and lifted financial regulations.

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"The next two years should see some improvement, with a normal monsoon likely to lift agriculture, and exports, industry and services expected to expand on stronger domestic and external demand, " it said.

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Japan's biggest bank by assets and market value is keen to expand outside its domestic market, where loan demand is sluggish following two decades of economic stagnation.

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