In addition, public investment is likely to increase, mainly led by that in infrastructure due to policy measures for national resilience, and this will contribute to underpinning economic activity. Moreover, business fixed investment is the key to sustainability of domestic demand. As I explained, it is expected to continue increasing firmly in fiscal 2019.
This is mainly supported by high levels of corporate profits, accommodative financial conditions, and steady demand for medium- to long-term strategic investment and for investment by the nonmanufacturing sector, both of which are relatively unsusceptible to changes in overseas demand and the business cycle. Going forward, business fixed investment is expected to increase moderately.