>>34641997 was actually a bad year for Japan's economy. 1992 saw the economic bubble of the late 80s burst, and had already started causing a slow decline, and then 1997 saw the Asian financial market crash, which damaged Japan's economy even more. Even the mainstream Japanese music industry, which saw a boom when people could no longer afford houses and other big picture stuff, so would spend more on consumer goods, saw its peak right at 1998 when Sakura began to air.
NHK, Kodansha, and Sogo Vision funded Cardcaptor Sakura, not Clamp themselves. As a Kodansha manga serialized in Nakayoshi they would probably be the primary rights holders, and would be giving Clamp some royalties from any money made off of the franchise. Not that Clamp didn't have any say over how the anime went, but it's not like it was their project.
>Keep in mind, these were purely japanese studios with japanese employees whose profession was to make japanese anime.Massive outsourcing to Asia for lower level jobs like inbetweening was already extremely common by then, Gundam Wing for example would start with layouts and rough key animation from a Japanese Studio (Dove) and then all the animation would be finished up over in Asia by their overseas subsidiaries.
>Then japan slowly spiraled into a forever recession and lots of the older experienced studios shut down or consolidated.Like who? Sunrise, Toei, Tatsunoko, Pierrot, Deen, Ashi Pro, Madhouse, Gainax, Production IG, AIC, OLM etc, all the big established studios of the 90s persisted into the 2000s. It was more marginal studios like E&G that died out in the early 2000s.
The answer to why Cardcaptor Sakura looks as good as it does, is likely just because Madhouse gave it a good schedule and good staff. They also did X 1999 a few years earlier, which looks phenomenal as well.