Along with spending on housing, spending on durable and semi-durable goods, such as motor vehicles and clothing, is expected to lead the rebound in household consumption in the near term. In particular, demand for interest-ratesensitive durables such as motor vehicles could be relatively strong initially, supported by low borrowing costs.
The performance of the economy improved since then, but some negative spillovers from Brexit are expected. Despite sustained fiscal and monetary stimulus in Japan, economic growth was marginally positive. While the past year was slightly more favourable for advanced economies, the same cannot be said for emerging markets, although there were divergent experiences.