boj speech, 2023-06-22
As for the outlook, although such slowdown is likely to continue for some time, I expect Japan's economy to recover moderately on the back of the following factors: (1) further expansion in inbound tourism demand against the background of the yen's depreciation; (2) full-fledged normalization of the face-to-face services industry with the downgrading of COVID-19 to a Class V infectious disease; (3) easing of supply-side constraints that had remained in some areas, such as semiconductors; as well as (4) an expected expansion in business fixed investment due to Japanese manufacturers transferring their production sites back home and to labor-saving investment to address labor shortages.
Sentiment: neutral
Topic: mp_economic_activity