Exports and production are likely to continue on an uptrend, as order backlogs have accumulated and as supply-side constraints, which have put downward pressure on them, are expected to wane. Business fixed investment is projected to be supported by high levels of corporate profits and by implementation of projects that have been postponed due to the impact of COVID-19 and supply-side constraints (Chart 3).
Investment to address medium- to long-term issues, such as digitalization, decarbonization, and restructuring of supply chains, is also expected to take place. In fact, business fixed investment plans for fiscal 2022 indicate that investment is expected to increase at a higher rate than usual. The second factor is solid private consumption.