Outlook for Economic Activity I will first touch upon the outlook for economic activity. Japan's economy is expected to continue on an expanding trend from fiscal 2019 through fiscal 2020. Corporate profits at high levels and improvement in the employment situation are expected to bring about increases in business fixed investment and private consumption, with overseas economies continuing to grow firmly on the whole.
However, there are various risk factors to this baseline scenario, including developments in overseas economies. In particular, the consequences of the trade friction between the United States and China still warrant some attention. In addition to this friction, various problems  4  exist between the two countries, including those regarding intellectual property rights, technology transfer, and national security.