With respect to the outlook, the probability that Japan’s economy will continue to recover is rising, although the pace of recovery may decelerate temporarily. This expectation is based on the fact that the positive cycle of production and consumption has not been deterred by the reaction to the increase in demand ahead of the consumption tax rate rise.
Despite the continued economic recovery, the private sector has not gained sufficient confidence in its future growth, reflecting persistent uncertainty about structural adjustments. Under the structural adjustment pressures, expected growth rates are unlikely to rise at the same pace in different industries and firms.