Assessment of the current state of the Japanese economy)
The Japanese economy is on a moderate recovery, while weakness can be seen in some areas.
* Private consumption holds firm as a whole.
* Business investment is almost flat.
* Exports are in a weak tone.
*Industrial production is flat recently.
* Corporate profits are improving. Firms' judgment on current business conditions is almost flat, while cautiousness can be seen in some areas.
* The employment situation is improving.
* Consumer prices are rising moderately.
Concerning short-term prospects, the economy is expected toward recovery, supported by the effects of the policies, while employment and income situation is improving. However, there are downside risks of the Japanese economy including slowing down of emerging Asian economies including the Chinese economy amid the advance in the process of U.S. monetary policy normalization. In addition, attention should be given to the effects of fluctuations in the financial and capital markets under such circumstances.