Moreover, if core companies and factories with long-term competitiveness move overseas, they are less likely to return home even with a correction in the yen’s appreciation. Therefore, as well as the risks that I have pointed out so far, the impact of the recent appreciation of the yen on Japan’s economy warrants due attention.
At the same time, the appreciation of the yen also has advantages, including lower import costs for energy and materials, which increases the purchasing power of firms and households.