As regards the outlook for the economy, growth in net exports is unlikely to be strong enough to prevent the deterioration of the economy, partly reflecting further adjustments in other Asian economies. Business fixed investment will continue to decrease due mainly to the decline in corporate profits and is likely to enter an adjustment phase.
With regard to private consumption, distinctive recovery can not be expected against the background of the weakening of income formation, although consumer confidence may cease to wane. Downward pressures on economic activities, particularly on production, are likely to continue to be strong for the time being, because the level of inventories is high and a conspicuous recovery in domestic private demand is unlikely.