Moreover, as seen from the fall in sales in the food-service and travel industries, consumers have been tightening the purse strings. As explained, the current state of Japan’s economy exhibits a vivid contrast between brisk exports and production on one hand, and sluggish domestic private demand, on the other.
Based on such recognition, at the Monetary Policy Meeting held last week, the Bank made an assessment, “Japan’s economy is picking up mainly due to various policy measures taken at home and abroad, although there is not yet sufficient momentum to support a selfsustaining recovery in domestic private demand.” Outlook for the economy Now, what is the outlook for the economy?