While I mentioned before that the Japanese economy is unlikely to fall into a recession due to domestic factors, we must note that an unexpected slowdown in overseas economies or other large external shocks could decelerate economic growth in Japan.
Price conditions and the outlook Turning to price conditions, domestic corporate goods prices are currently rising at a pace slightly below 2 percent year on year, reflecting the increase in crude oil and other international commodity prices and the depreciation of the yen. While the rate of increase is likely to ease, corporate goods prices are projected to continue rising with strong upward pressure.