The financial bubble and the subsequent disruptions owe much to the wide-ranging financial de-regulation; the procyclicality in regulatory frameworks; insufficient attention to financial interconnectedness and macro-systemic and liquidity risks; and, last but not least, the lack of market transparency.
Household income has also continued rising moderately, reflecting the improvement in employment and wages. In this situation, private consumption has been steady. Housing investment has continued to show some strength. Meanwhile, public investment has basically been on a downtrend. Japan's economy is expected to continue to recover steadily. Exports are expected to continue rising against the background of the expansion of overseas economies.