of firms, % firms cautious about changing output prices ( 20 % ) other firms ( 80 % ) - 10 - 20 - 30 - 40 cy 07 less than 1 yr. note : figures are for all industries and enterprises in the tankan survey. figures for " firms cautious about changing output prices " are for firms that replied that their output prices were " unchanged " for at least about 95 percent of the period from 1991 to 2019. the dotted lines represent forecasts from the september 2022 survey. source : ikeda, s. et al., " firms'recent price - setting stance : evidence from the tankan, " bank of japan review series, no. 23 - e - 2 ( february 2023 ), https : / / www. boj. or. jp / en / research / wps _ rev / rev _ 2023 / data / rev23e02. pdf. 1 - 4 yrs. 5 - 9 yrs. 10 - 14 yrs. 15 - 19 yrs. 20 - 24 yrs. 25 - 29 30 yrs. yrs. and over note : the panel shows the distribution of firms that responded that they had raised their output prices since the september 2021 tankan survey in terms of the number of years that had passed until the first price rise since that survey from the previous price rise. firms are selected on the basis of being " cautious about changing output prices, " having replied that their output prices were " unchanged " for at least about 95 percent of the period from 1991 to 2019. source : ikeda, s. et al., " firms'recent price - setting stance : evidence from the tankan, " bank of japan review series, no. 23 - e - 2 ( february 2023 ), https : / / www. boj. or. jp / en / research / wps _ rev / rev _ 2023 / data / rev23e02. pdf. chart 11 consumer prices di of price changes measures of core inflation % points - 10 - 20 - 30 - 40 - 50 - 60 - 70 - 80 cy 07 % di ( left scale ) share of increasing items ( right scale ) share of decreasing items ( right scale ) 3. 5 3. 0 note : the diffusion index ( di ) is defined as the share of increasing items minus the share of decreasing items. the share of increasing / decreasing items is the share of items for which price indices increased / decreased

the fact that, even though the economic expansion from 2002 originated from exports, there was active business fixed investment aimed at exports. moreover, through the effect of creating employment and wealth effects from rising stock prices, private consumption also increased. in that light, i believe that we should not make a simple choice between domestic and external demand, but rather we should see them as two mutually important elements for growth, including their transmission mechanisms. currently, asia is increasing its presence as the growth center of the global economy. japan has a considerable advantage that it is closely located to the area with great growth momentum. to make the most of the benefits from globalization and capture demand from the area that is growing strikingly are the shortcut for japan in gaining the energy for economic growth. there are also views that pay attention to the negative connotations of globalization, such as severe competition with overseas products and shift of production bases to overseas by business counterparts. however, income gained through globalization has been invested domestically, and as a result, it has exerted positive effects on the domestic economy, too. i believe that it is necessary not to turn away from globalization by claiming its negative aspects only, and to actually take globalization positively, actively taking its advantages. the next question is how to capture the benefits from growth in overseas economies. to that end, it is important to increase exports to growing markets, such as those in asia. in emerging economies, huge markets are being formed. from now on, as people ’ s level of income increases further, the level of products and services that people seek is also likely to rise. this is a great opportunity for japan, given its strength in relatively high - end products. it should be noted that the areas in which growth is expected are not limited to durable consumer goods and general machinery, which have been japan ’ s major exporting items, or the environment - related areas, where japan currently takes the lead in technology. for example, quality agricultural products or unique local specialties are the areas in which potential demand is great. also, while it may be difficult to conjure from the word “ exports, ” tourism, which invites foreign tourists to japan, also means exporting added value in the form of services. considering these points, i believe that the areas that are rich in tourism resources have potential for high growth. moreover, there are other channels for capturing the benefits from overseas economies. especially, profits from overseas investment are increasing substantially. if firms manage to tailor production technologies