In particular, let me explain these by focusing on three questions that I have received often recently: how long the global economic slowdown will continue; whether it will affect domestic demand; and the degree of the consumption tax hike's impact. I. Financial and Economic Developments I will start by talking about developments in the global economy.
Let me first look back at developments over the past few years (Chart 1). From 2017 through mid-2018, the global economy had been firm, supported mainly by global growth in IT-related demand, a resultant boost in business fixed investment, and steady domestic demand in each country.