Economic Outlook

Even after the consumption tax rate was raised, there are many people who go out to shop. The number of new car sales for April dropped sharply from the previous month, but the decrease in reaction to the last-minute rise in demand before the consumption tax rate was raised is within the scope of assumption. The economy is expected to be propped up by economic policies and the front-loading of public works project. Business will not sink all that much. Rather, consumption will grow from the summer and the economy will head toward positive growth. Exports declined in March, but this was due to an increase in domestic shipments to deal with a rush in demand before the consumption tax hike.