Current situation and challenges facing Japan’s economy  Current condition Let me begin by briefly talking about the current condition of Japan’s economy. Economic activity, as a whole, remains flat. On the bright side, corporate profits continue to improve, and business fixed investment is on a gradual upturn.
Indeed, according to the Bank’s Tankan Survey released in early July, the ratio of profits to sales is expected to hit a record high in fiscal 2003 since the bursting of the bubble, surpassing the past highs of 1996 and 2000. And, the business fixed investment plan for fiscal 2003 is the largest since fiscal 2000.