Uncertainty about the outlook for overseas economies, however, is not insubstantial, including the timing of economic recovery. Attention should continue to be paid to the possibility that the European debt problem may become more serious.
While the U.S. economy continues to be on a moderate recovery trend, the momentum toward recovery warrants careful monitoring given that uncertainty about the fiscal policy outlook, in particular with regard to the “fiscal cliff”, remains significant. As for the Chinese economy, improvement in the supply and demand balance may require considerable time, especially in materials industries, where there is excess production capacity.