Furthermore, the downside risk to the economic outlook for overseas economies continues to require attention, given that there are some uncertain factors including geopolitical developments and their economic implications. On the domestic side, stock prices are weak. Hence, careful monitoring is required of progress in the resolution of the nonperforming-loan problem and its effects on stock prices, corporate finance, and the economy.
On the price front, import prices are on a rising trend with some fluctuations, reflecting developments in overseas commodity prices such as crude oil. Domestic corporate goods prices have been declining gradually due to the rise in import prices and the improved supply-demand balance in materials industries, despite the continued fall in machinery prices.