The renewed concern over the nonperforming-loan problem of financial institutions and its effects on the economy may be one factor. With regard to economic developments in the short-term, however, the most significant factors are likely to be the concerns over the downward pressures of fiscal tightening.
The Bank has not yet detected any clear signs of such downward pressures, and intends to continue examining the possible effects of fiscal tightening. There appear to be, however, several good reasons not to be too pessimistic.