growth of just under 7,0 per cent, recent developments including the bursting of the Chinese equity market bubble, and systemic risks to the financial markets and the property market, increase the downside risks to the outlook. The growth moderation has already contributed to the persistent decline in commodity prices that began in 2011, and accelerated in the past two months.
According to the March Tankan (ShortTerm Economic Survey of Enterprises in Japan) released at the beginning of April, business sentiment has been improving, with such improvement spreading to the nonmanufacturing industry and small firms, in addition to large manufacturing firms.