Part of the problem in recent years may have been the less-than-ideal mix of monetary conditions, with interest rates too low to encourage saving or discourage borrowing and with the exchange rate too high to allow the export and import-competing sectors to grow.
In Japan, weakness in final demand such as business fixed investment and private consumption has become conspicuous, and the severe adjustment phase will inevitably continue for some time. On the other hand, conditions for exports are showing some positive signs. In addition, inventory adjustments, especially those in ICT-related goods, have been making progress gradually.