Although such corporate restructuring is expected to improve productivity, it is likely, in the short run, to reduce fixed investment and discourage household expenditure through the resulting deterioration in employment and income conditions. Under such circumstances, it is still difficult to expect an immediate selfsustained recovery in private demand. Overall economic developments require careful monitoring in consideration of the above points.
It is also important to promote structural reform in order to assure the economy’s sustained growth in the medium term. With regard to prices, import prices continue to rise due to the increase in international commodity prices such as crude oil prices.