Recent developments in and outlook for economic activity and prices at home and abroad  Current situation of Japan’s economic activity and the bank’s projection in the January 2016 outlook report To start with, let me talk about economic developments in Japan.
Although global financial markets have been volatile since the turn of the year, I believe there is no need to be too pessimistic as the fundamentals of Japan’s economy have been firm. With regard to Japan’s recent economic activity, domestic demand has followed an uptrend, with a virtuous cycle from income to spending being maintained in both the household and corporate sectors.