Since then, the aggregate supply and demand balance – which shows the rate of utilization of labor and fixed capital – has been improving moderately and the year-on-year rate of decline in the CPI has been shrinking steadily since end-2009 and recently has been around 0 percent.
Outlook for Japan’s economy Based on the aforementioned developments in overseas demand, exports and industrial production are expected to continue decreasing and Japan’s economy as a whole to remain relatively weak for the time being.