Needless to say, it is essential to accurately gauge the situation on the supply side of the economy in discussing the mechanism of economic recovery and its sustainability, as well as the effects and challenges of monetary policy.
Bearing that in mind, I have emphasized in my past speeches that the main feature of the current economic recovery in Japan is that it has been primarily driven not by exports, like in typical recovery phases in the past, but by consumption and nonmanufacturing activities, and that the driving force has been the heightened strength of the supply side from the standpoint of several aspects.