The main driving force of the recovery has been improvement in overseas economic conditions, as a result of which Japan’s exports and production have been increasing, while business fixed investment is showing signs of picking up. Moreover, the government’s economic stimulus measures favoring environment-friendly products have contributed significantly to the pick-up in private consumption.
Overseas economies have continued to recover moderately, underpinned by the effects of both stimulus measures adopted around the world and inventory restocking. Looking at developments by region, the Chinese economy has continued to manifest high growth, supported by the surge in fixed asset investment spurred by a large stimulus package of 4 trillion renminbi, although recently the pace of growth has slowed somewhat.