Japan’s economy has ceased to deteriorate and started to pick up, despite the increasingly severe employment and income situation, on the realization of the positive effects of the government’s stimulus measures that favor energy-efficient products, such as tax reductions applied to purchases of environment-friendly cars and the eco-point system for electrical appliances.
However, there has not yet been sufficient momentum for self-sustaining recovery in domestic private final demand. In terms of economic outlook, it is expected that the effects of inventory restocking and policy measures, which have been driving growth, gradually will abate.