is forecasted to deteriorate considerably in three months ahead, suggesting that firms have come to be cautious due partly to the appreciation of the yen. However, when looking from a somewhat longer perspective, Japan’s economy is expected to return to the moderate recovery path as emerging economies with high growth potential will complete the current mild adjustment phase.
While there are various risks associated with such outlook, we need to keep an eye on developments in overseas economies, mainly the U.S. economy. An important risk factor unique to Japan would be developments in car sales in the future, and I think that there is considerable uncertainty associated with the sales.