, figures for households are from the opinion survey on the general public's views and behavior, estimated using the modified carlson - parkin method. figures for firms show the inflation outlook of enterprises for general prices ( all industries and enterprises, average ) in the tankan. sources : cabinet office ; quick, quick monthly market survey < bonds > ; bank of japan. chart 8 i. current situation of and outlook for japan's economy actions of governments and central banks large - scale fiscal support in response to covid - 19 expanding central bank balance sheets % of nominal gdp 30 % of nominal gdp japan united states euro area cy 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 japan united states europe emerging economies note : in the right - hand chart, figures are based on estimates in u. s. dollars released by the imf in its april 2021 fiscal monitor. they include only fiscal support that affects the fiscal balance immediately. tax deferrals, government guarantees for banks, firms, and households, etc. are excluded. the figure for europe is the sum of figures for germany, france, italy, spain, and the united kingdom. the figure for emerging economies is the sum of figures for 29 economies. sources : haver ; imf ; bank of japan, etc. chart 9 i. current situation of and outlook for japan's economy consumer price index ( cpi ) y / y % chg. mobile phone charges effects of the " go to travel " campaign effects of the consumption tax hike and free education policies energy excluding the above factors cpi ( less fresh food ) - 1 - 2 cy notes : 1. figures for energy consist of those for petroleum products, electricity, and gas, manufactured & piped. 2. figures for the " effects of the consumption tax hike and free education policies " from april 2020 onward are staff estimates and include the effects of measures such as free higher education introduced in april 2020. source : ministry of internal affairs and communications. chart 10 ii. challenges for central banks today the bank's strategy on climate change climate change is a global challenge and could have a broad impact into the future. various entities in society and the economy need to actively play their roles. the bank, with an intention of furthering its efforts on climate change consistent with its mandate of achieving price stability and ensuring the stability of the financial system, decided the comprehensive strategy. monetary policy financial system operations & communication international finance research the impacts of climate change on economic

indicated by the imf itself that the projections are " precarious " and presume that progress will be made toward resolving trade policy differences. looking at developments by major region, the u. s. economy has continued to be underpinned by the household sector against the backdrop of solid growth in employment and income. although economic growth in some countries - - such as france - - is being underpinned by consumption, the european economy as a whole, in contrast, has seen moves to defer investment, partly against the backdrop of uncertainty over political developments, and there are no signs of the business sentiment of manufacturing firms - especially those in germany - - bottoming out. with regard to germany in particular, the deutsche bundesbank assessed that the growth rate of the economy for the july - september quarter of 2019 could be negative for the second consecutive quarter, following the april - june quarter. the chinese economy has continued to see stable growth on the whole, but weakness has been observed in manufacturing, as suggested by such indicators as industrial output - - for which growth for july was at its lowest level in about ten and a half years and decelerated further in august. in other emerging and commodity - exporting economies, such as the nies and asean economies, effects of adjustments in it - related goods, for example, have been observed. in terms of the outlook for overseas economies, slowdowns are likely to continue for the time being ; thereafter, however, such economies are expected to grow moderately on the whole, with the growth rates rising somewhat, partly due to the effects of each economy's stimulus measures and a pick - up in manufacturing, where relatively weak developments have been observed mainly in it - related and capital goods. nevertheless, there are concerns that, with the brexit deadline approaching, global financial market conditions might suddenly change depending on the outcome of negotiations on the united kingdom's exit from the european union ( eu ), and i am of the view that downside risks to business activity remain significant, mainly for manufacturing, with trade issues becoming chronic, particularly between the united states and china. accordingly, i am paying particular attention to the timing and the pace of the pick - up in overseas economies. b. japan's economy 1. current situation now i would like to move on to developments in japan's economy. the bank assesses that japan's economy has been on a moderate expanding trend, with a virtuous cycle from income to