This is attributable to the fact that the real economy is improving and to factors such as the low crude oil prices and the past correction of the yen appreciation.
その後、貿易摩擦や円高などを経て海外進出が進み、現在では全世界で生産が行われるようになりました。
Since then, automakers experienced the effects of trade friction and the appreciation of the yen, and have been expanding business overseas, with automobiles produced around the world.
As I mentioned earlier, the problem in Europe has already spilled over to Japanese markets, in the form of the yen's appreciation and weak stock prices since this past summer.
As for business activity, exports and industrial production remained sluggish, reflecting the effects of the slowdown in emerging economies and the yen's appreciation, as well as supply-side constraints that were mainly due to the Kumamoto Earthquake.
A9Excluding the effect of progress in the appreciation of the yen, natural catastrophe and foreign exchange gains, we projected an increase in net premium written and business unit profits.
Looking at the latest CPI for all prefectures and that for Tokyo, it is a relief that the deceleration in prices of goods has paused, partly because the effects of the yen's appreciation through early spring have dissipated.
Considering the likely persistence of the large output gap in the economy and the effect of the yen's appreciation, the decline in overall prices was expected to gradually accelerate in fiscal 1999.
第3に、秋以降の海外経済の減速や円高、タイの洪水なども貿易収支の下押し要因となっています。
And third, the slowdown in overseas economies and the appreciation of the yen since autumn 2011, as well as the flooding in Thailand, weighed down exports.
In the phase of yen appreciation after the global financial crisis, the share of firms' overseas investment increased, and this trend continued for some time even amid the correction of the excessive appreciation of the yen..
The slowdown in overseas economies and the appreciation of the yen in the second half of 2011 might have put additional downward pressure on business fixed investment in the manufacturing industry.
Against a long-term trend of yen appreciation, factor(1) has been the main reason for overseas advances by Japanese companies, but in recent years(2)-(4) have also become major incentives.
The most debated issue at present with regard to the yen's appreciation is the possibility that Japan's firms will accelerate their shift to overseas production, which may result in a hollowing-out of domestic industries.
In terms of domestic factors, there are still many uncertainties regarding the supply and demand balance of electricity and the effects of the yen's appreciation, as well as the pace of strengthening in reconstruction-related demand.
Although sales in the expanding markets of China and India and in other emerging economies are robust, the impact of yen appreciation and other factors has kept consolidated revenues below the targeted level.
The coexistence of high economic growth and low inflation throughout this period suggested gains in productivity, and we observed widespread optimism that Japan had overcome the adverse effect of not only the oil shocks but also the yen's appreciation.
Since exports have been a driving force of Japanese economic growth, due attention should be paid to developments in exports, including the effects of the slowdown in overseas economies and the appreciation of the yen.
It should also be noted that, theappreciation of the yen, from a longer-term perspective, has the positive effect of bringing about an improvement of the terms of trade through a decline in import prices, that is, it leads to an increase in Japan's overall real income.
Needless to say, theappreciation of the yen weighs directly on the profits and profitability of exporting firms. And in the current situation, it can also significantly affect business sentiment and consequently the outlook for Japan's economy, by increasing uncertainty over the global economy.
Outlook for economic activity and prices Although adverse effects from the slowdown in overseas economies and theappreciation of the yen may continue for the time being, Japan's economy is expected to return to a moderate recovery path as reconstruction demand following the disaster gradually materializes.
Given the sluggishness of private demand, a distinct narrowing in the output gap could hardly be expected. In this environment, if the effect of theappreciation of the yen surfaced, a gradual acceleration of the decline in overall prices might be possible.
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