Economic situation

In the revised real GDP growth rate for the January-March quarter that was released today, the figure compared to the previous quarter was revamped significantly from 2.4% on an annualized basis in the first preliminary estimate to 3.9%, with capital investment seeing a large upward revision. Domestic investment is beginning to increase owing to factors such as the return to Japan of operation bases from abroad. This is proof that companies are getting rid of their deflationary mindset and shifting to proactive management. The business environment is steadily improving because of Abenomics. The excessive rise of the yen has been corrected, investment is moving solidly and real wages are rising. We are seeing more good elements for the economy, and it is expected that the Japanese economy will continue to grow smoothly in the future as well.

G7

G7 summit is an arena for showing the unity of the Group of Seven industrialized nations on both the economic and diplomatic fronts. Prime Minister Abe pointed out the importance of the Asian Infrastructure Investment Bank (AIIB) to operate in a fair manner under proper governance. He also unveiled a plan that Japan, in cooperation with the Asian Development Bank (ADB), will provide $110 billion over the next five years for infrastructure investment in Asia. His bold words and deeds heighten the presence of our country and are very encouraging.

Japan will assume the G7 presidency next year. Ise Jingu, a Shinto shrine complex, is a place that symbolizes our country's history, culture and tradition. Also, the Ise-Shima area is where Japan's beautiful and unchanged scenery remains, and it is a place that is fitting to welcome G7 leaders. The Ise-Shima Summit will be a good opportunity to show our country's presence again as well as have them actually feel the depth of our country.