Any deceleration, however, is unlikely to be prolonged. II. The Japanese economy  Keeping in mind the present situation of and outlook for overseas economies I just outlined, let me now talk about the Japanese economy and prices. A.
Economic activity  The pace of improvement in the economy slowed temporarily from the autumn of 2010, partly due to the expiration of subsidies for purchases of environmentally friendly cars. Thereafter, from the beginning of 2011, the economy started to gradually return to a moderate recovery path.