The Bank is also monitoring developments in risk factors and their impacts on the global economy; risks include those of the new U.S. administration's economic policy and of political situations in Europe, as well as geopolitical risks. Let me now turn to Japan's economy.
Japan's exports and production have been on an increasing trend amid the global improvement mainly in the manufacturing sector and trade activity (Chart 3 [left chart]). Against this background, in the corporate sector, profits have been at record high levels (Chart 3 [right chart]). Business sentiment has been favorable on the whole, and business fixed investment has continued on a moderate increasing trend.