These developments are likely to lead to an increase in demand for some capital goods and parts – in which Japan enjoys a competitive advantage – and therefore deserve attention when we consider the outlook for Japan’s exports.
In the euro area economy, a disinflationary trend – as seen in the decline in the year-on-year growth rate in consumer prices to 0.3 percent – is a matter of concern. However, international markets’ views on the European debt problem remain stable and the European Central Bank implemented a series of additional monetary easing measures in June and September.