Adjustments in the IT-related sector are likely to be completed in or after spring 2005, while trend expansion of overseas economies, particularly the United States and China, is expected to continue. Against this background, Japan's economy will gradually emerge from its current temporary pause and move onto a sustainable growth path. II.
Current economic situation in relation to the inventory cycle  Some hold the view that the Bank's outlook for the economy is a little too optimistic. They maintain that, in the expansion and contraction of the business cycle, an economy which has lost its upward momentum will inevitably enter a downturn.