The increase in production then positively affected corporate profits, employment, and business fixed investment. The economy has been recovering moderately, but the recovery appears to have paused since autumn 2010 due to the deceleration in overseas economies, the phasing out of the various stimulus measures to increase demand for environmentally friendly goods, and the appreciation of the yen.
At present, the economy is at a critical juncture and could either start to grow again or, if it fails to gain momentum, start shrinking. Fortunately, the deceleration of overseas economies appears to have ended and exports are thus expected to start recovering soon.