However, I can say, without risking any transgression into the fiscal policy space that, subject to the effectiveness of the policy responses and the success of the transformation agenda, the issues I outlined above have the potential to undermine the resilience of the economy to any future economic shocks including the effects of climate change, prolonged droughts and water scarcity, as well as erosion of macroeconomic policy discretion hitherto provided by strong fiscal and external buffers.
Going forward, exports are expected to follow a moderate increasing trend in line with the moderate rise in growth in overseas economies. Corporate profits have been at historically high levels, supported not only by the increase in demand at home and abroad but also by the depreciation of the yen since late 2016. Under these circumstances, business sentiment has steadily improved.