In terms of the outlook for overseas economies, slowdowns are likely to continue for the time being; thereafter, however, such economies are expected to grow moderately on the whole, with the growth rates rising somewhat, partly due to the effects of each economy's stimulus measures and a pick-up in manufacturing, where relatively weak developments have been observed mainly in IT-related and capital goods.
Nevertheless, there are concerns that, with the Brexit deadline approaching, global financial market conditions might suddenly change depending on the outcome of negotiations on the United Kingdom's exit from the European Union (EU), and I am of the view that downside risks to business activity remain significant, mainly for manufacturing, with trade issues becoming chronic,  2  particularly between the United States and China.