During this first quarter, the Japanese economy was marked by continuing deflation and stagnant personal income. The SARS epidemic intensified the uncertainty regarding the future of the world economy and the Japanese economy remained in difficult straits.
One member pointed out that Japan's economy continued to expand, particularly in the corporate sector, but some market participants held pessimistic views on the outlook, as evidenced, for example, by the decline in stock prices since autumn 2018.
The Japanese economy continued to enjoy a modest recovery during the consolidated financial year. Recovery in the world economy resulted in strong export performance, while the domestic economy saw higher capital investments and a rebound in consumer spending.
As such, Japan's economy has been steadily following a path toward realizing the price stability target of 2 percent-- that is, a path to overcome deflation-- and we are now getting an increasingly better response under the QQE Charts 13, 14, and 15.
The second point is that, on the back of the effects of a policy mix as well as the recovery in overseas economies, Japan's economy is likely to expand moderately, with a virtuous cycle from income to spending being maintained in both the corporate and household sectors.
Japan's economy continued to improve moderately, as seen in the preliminary GDP data for the April-June quarter, which showed the economy had grown for two consecutive quarters. However, the employment situation remained severe, and private consumption was generally unchanged.
The Bank estimates that the economic growth rate that can be achieved in the long term, or the so-called potential growth rate, is nearly 1 percent. Thus, Japan's economy is expected to continue growing at a pace consistent with its potential.
Going forward, with the virtuous cycle continuing to operate steadily, domestic demand is expected to maintain firmness and exports are expected to head for a moderate increase, and Japan's economy is likely to continue growing at a pace above its potential as a trend.
This virtuous cycle is likely to continue operating with the fall in crude oil prices to date and the government's economic stimulus working as boosting factors, and thus Japan's economy is expected to continue its moderate recovery trend.
Overview of the first quarter of the year ending March 2017 While the Japanese economy during the company's first quarter period saw robust employment and income figures, the economic situation saw sluggish consumption, which among other factors has resulted in a long-term stagnation.
Although the Japanese economy deteriorated significantly, exports and production have started to pick up since hitting bottom in February 2009, due to recovery in overseas economic conditions, mainly in emerging economies such as China, and progress in inventory adjustments at home and abroad.
Meanwhile, one member noted that, as Japan's economy had reached a state of no longer being in deflation, it was important to augment the momentum of the virtuous cycle that had emerged during this process through additional easing measures, thereby putting an end to deflation.
While the effects of various policy measures are likely to wane, emerging and commodity-exporting economies are likely to maintain high growth, and the momentum for a self-sustaining recovery in Japan's domestic private demand is expected to gradually gather pace; Japan's economy therefore is likely to be on a recovery trend.
The Japanese economy remained on a moderate recovery path, supported by improvement in corporate earnings and employment conditions as well as a rebound in personal consumption, despite of slowdowns in manufacturing and logistics due to a string of natural disasters, including heavy rains, earthquakes and typhoons, and some signs of weakness in exports and production.
Overview of the FY ending March 2015 The Japanese economy during the company's fiscal year saw continuous improvements in corporate earnings and increased stock prices due to government fiscal and economic policies, and the trade deficit improved, but an increase in consumption tax was among the factors leading to a slow recovery in domestic consumption.
Overview of the FY ending March 2012 The Japanese economy during the year, although showing some signs of recovery from the March 11 earthquake, continued to be challenged with prolonging problems of power shortages and radioactive material contamination in the aftermath of the nuclear plant accident, with trends of deflation and the rising yen continuing, together with decrease in trade surplus and stagnating employment conditions.
In deciding a specific inflation rate, the Bank considered that(1) there is considerable uncertainty surrounding the prospects for Japan's economy because it is in a process of transition to a normal growth path following long-term stagnation, and therefore(2) deliberations should fully take into account the perception of price developments held by the general public, which is used to long periods of low inflation rates, including even the period of the financial bubble prior to the 1990s.
わが国経済はバランス良く成長している。
Japan's economy has been growing in a well-balanced manner.
English
中文
عربى
Български
বাংলা
Český
Dansk
Deutsch
Ελληνικά
Español
Suomi
Français
עִברִית
हिंदी
Hrvatski
Magyar
Bahasa indonesia
Italiano
Қазақ
한국어
മലയാളം
मराठी
Bahasa malay
Nederlands
Norsk
Polski
Português
Română
Русский
Slovenský
Slovenski
Српски
Svenska
தமிழ்
తెలుగు
ไทย
Tagalog
Turkce
Українська
اردو
Tiếng việt