As you know, exports account for only 10–11% of the combined GDP and which makes the impact of exchange rate variations comparable to those in the United States or Japan. So, most of all, we are interested in stable internal prices and, secondary, we are also interested in a stable exchange rate development.
Challenges facing the Japanese economy  So far, I have been talking about the outlook for domestic and overseas economies; I would now like to move on to discuss the challenges facing the Japanese economy. These include the low birth rate and population aging, the prolonged period of low economic growth and deflation, and the large fiscal deficit.