While the economy as a whole has been improving, causes for concern seem to have increased in number. As for the outlook, Japan’s economy is expected to return to a moderate recovery path as domestic demand remains firm and overseas economies emerge from their deceleration phase.
Such a scenario can be confirmed in the forecasts of the majority of the Policy Board members; in terms of the median forecast as of July 2012, real GDP was projected to grow at 2.2 percent in fiscal 2012 and 1.7 percent in fiscal 2013.