Should capital inflows continue and economic conditions in emerging and commodity-exporting economies turn out to be stronger than expected, the greater exports thereby generated could represent an upside risk for Japan’s economy.
Nevertheless, if the aforementioned risk concerning the U.S. economy materializes and economic activities in advanced countries are weaker than expected, growth in emerging and commodity-exporting economies might come under downward pressure, generated by a decline in trading volume and an outflow of capital.