Challenges for Japan's Economy I would now like to express my opinions regarding Japan's current economic situation from a longer-term perspective. According to the Bank's estimates, the potential growth rate has been in the range of 0.5-1.0 percent recently. Although the rate has risen compared to around 2010, it can be said that Japan's growth potential has been sluggish of late.
Banks and banking supervision Banks have stepped up their lending to firms markedly, in response to the recovery in demand for working capital: the increase amounted to 5.2 per cent on an annualized basis in the three months ended in April; the rate of growth in the twelve months to April was 4.4 per cent, the highest among the main countries of the euro area.