In the following, I will give an overview of overseas economies and then Japan's economy, which is in the process of recovery, and discuss points to note in the current and future situations.
For the supply of funds at the government level administered through such working facilities as the Export-Import Bank of Japan and the Overseas Economic Cooperation Fund, the main task is that of strengthening the financial cooperation system for developing countries.
If overseas economies and global financial markets should follow the disruptive course mentioned above, Japan's economy may be adversely influenced through, for example, changes in exports and imports, corporate profits, and financial market conditions.
The outlook for Japan's economy relies heavily on the recovery of overseas economies, the stability of global financial markets, firms' medium- to long-term growth expectations, and financial conditions in Japan.
As the former US Assistant Treasury and critic of the US foreign economic policies of recent years, Paul Craig Roberts recently described it,“Greece's creditors, the EU and the European Central Bank….
Views on the expected rate of inflation 3. Japan's response to globalization C. Risk Factors 1. Risks concerning overseas economic activity and prices 2.
We will work within the foreign economic environment that has taken shape, develop domestic production and technology and act more decisively to carry out transformation.
However, economic indicators in the United States and in some other regions are soft on the whole. Based on this development, the recovery in the overseas economy is likely to be anemic at least for the time being.
When one looks at the contribution of individual components to GDP growth, domestic demand is by far the main factor(Slide 4). However, this does not refute the important role that the overseas economy played.
The primary reason why the Bank takes this view is that the effects of developments in overseas economies and of the turmoil in global financial markets, which I mentioned earlier, have been steadily spreading to Japan's economy..
On the other hand, net exports(real exports minus real imports) continue to decrease, reflecting not only a slowdown in overseas economies such as those of the United States and East Asia but also sluggish demand for information technology(IT) related goods.
Regarding overseas economies, as growth in advanced economies is expected to gain momentum over time, the NIEs and the ASEAN countries are likely to head toward stability, and their pace of growth as a whole will gradually accelerate.
Since early autumn, the slowdown in overseas economies, the appreciation of the yen, and the flooding in Thailand have been affecting the economy, and Japan's recent economic activity has been more or less flat.
JBIC will continue to accumulate knowledge of overseas economies and international finance and provide the private sector, including companies and financial institutions, with useful information for their business expansion overseas..
In fiscal 2020, the pace of increase in exports is expected to accelerate, with the growth rates of overseas economies rising, and government spending accompanying the hosting of the Olympic Games is expected to underpin the economy..
It also needs to be recognized that there will be feedback effects from overseas economies and markets which will influence domestic economic and financial conditions.
Attention needs to be paid to such factors as the slowdown in overseas economies and the effects of the scheduled consumption tax hike in fiscal 2019, as well as a peak-out of Olympic Games-related demand and developments in the IT sector from fiscal 2020 onward.
Thus, the Bank recognizes that Japan's economy has become more resilient. However, there is a possibility that business and household sentiment will be affected depending on future developments in overseas economies and the markets.
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