Weak exports reflect a shift in production locations abroad, a decline in Japanese firms’ international competitiveness, and weak recovery in the global economy.
With regard to developing and providing products and services, Japan needs to develop high-value-added products and services with good reputations and explore new sources of domestic demand through initiatives such as advancing financial technology. It also is  8  important to expand the channels for capturing overseas demand in neighboring economies, mainly in Asia, where high growth is expected.