Public investment has continued to increase, and housing investment has generally been picking up. Private consumption has increased resilience. Exports and production have stopped decreasing. Business fixed investment appears to have stopped weakening. As for the outlook, domestic demand is likely to remain resilient due to the effects of monetary easing and various economic measures.
The growth rates of overseas economies will gradually pick up. Japan’s economy is expected to return to the moderate recovery path around mid-2013. Thereafter, a virtuous cycle of production, income, and spending is expected to be maintained. Japan’s economy is likely to continue growing above the potential growth rate.