Therefore, Japan’s economy is likely to continue growing at a pace above its potential growth rate, which is estimated to be around 0.5 percent or lower, as a trend.
In addition, larger integration into the international financial system may contribute to the efficient functioning of the entire economy by providing additional financing at a reasonable cost to domestic agents, by facilitating the transfer of technology from abroad and by stimulating the performance of the domestic financial sector. However, financial globalisation may also entail some risks.