BIS central bankers’ speeches  1  At the same time, however, the supply-side factor is not the sole cause of downward pressure on the economy. Additional downward pressure from the demand side, which is partly related to the supply-side shock, is also contributing.
The accident at the nuclear power plant and power shortages have exerted downward pressure on economic activity through a deterioration in business and household sentiment, as well as a declining number of tourists from abroad. Voluntary restraint by consumers spread nationwide immediately after the earthquake, dampening spending particularly for services such as tourism and eating out, as well as for luxury goods.