Japan's economy has started to recover as overseas economies improve and exports stop decreasing. Domestic demand is also increasing, supported by growth in public investment, housing investment, and resilient private consumption. Looking forward, Japan's economy is expected to continue its moderate recovery as domestic demand remains strong and overseas growth picks up, supporting increases in exports, business investment, and industrial production. Financial conditions also remain accommodative as monetary easing continues. However, there remains uncertainty around the global economic outlook.