Japan economic recovery depends on exports

Bank of Japan Governor Haruhiko Kuroda said on Monday that the nation's economy has been steadily recovering, but whether the momentum will be maintained largely depends on how exports will expand amid concerns over some overseas economies. The Governor predicts that the Japanese economy "is likely to continue growing at a pace above its potential" boosted by sturdy domestic demand and moderately increasing exports. However, Kuroda also highlighted Japanese exports that currently remain flat, lack momentum despite a weaker domestic currency. Looking ahead, the BoJ Governor underlined brighter prospects is due largely to the U.S.  and European economies recovery, saying that developed economies are seen to be the main driving force in the global economy at the moment. Nevertheless, he concerned about some risks to growth in China and other emerging economies, urging attention to such issues as excess production capacity and debt in China, current account deficits in commodity-exporting countries and geopolitical threat from some nations.

Today Japanese Prime Minister Shinzo Abe is expected to unveil a fresh round of reforms to prop up a nascent growth recovery, his second attempt at implementing the third arrow of his economic plan.