Thereafter, in fiscal 2012, Japan’s economy is expected to continue growing at a pace above that in fiscal 2011, as the transmission mechanism by which the strength in exports and production feeds through to income and spending, will likely operate more effectively due to a continued relatively high growth in overseas economies, especially emerging and commodity-exporting economies.
The linkages between our economy and the US and, indeed, the UK, suggest that there will inevitably be some effect from developments in these economies through various channels such as trade, financial flows and even perhaps foreign direct investment. The scale of the impact is difficult to assess.