This, along with the favorable financial environment created partly by the Bank’s monetary easing, is expected to continue underpinning the economy. Moreover, net exports are likely to follow an upward trend reflecting the recovery of overseas economies, and it is also highly probable that business fixed investment will increase gradually with an improvement in corporate profits and sentiment.
However, housing investment is expected to decline for the time being. While there seems to be no substantial change in firms’ stance to reduce personnel expenses, an improvement in households’ income conditions, which should support private consumption, is likely to be moderate at the most.