However, it may be said that implementation of the necessary structural reforms for boosting growth and productivity has been sluggish, and the shift in economic structure has been limited. Issues related to mounting government debt and social security reforms have generated uncertainty over the future economic outlook.
Moreover, a series of shocks – such as the global financial crisis, the Great East Japan Earthquake, the European sovereign debt crisis, and the 2011 Thai floods – also contributed to this outlook. These factors combined to deter expectations of further rises in growth by firms and households despite a very accommodative financial environment driven by monetary stimulus measures.