Efforts by the corporate sector In contrast with the period of rapid economic growth, an increasing number of firms are placing more emphasis on future cash flow than sales in assessing their business performance, and they have started taking on new business opportunities geared toward raising value added.
The driving force for an increase in productivity is capital investment, and I expect that the recent tight labor market conditions are likely to act as a catalyst for the change of firms’ behavior. Third, securing the credibility of fiscal management is important in ensuring the ultimate success of the QQE.