Japan's economy has recovered moderately, although some weakness has been seen in part. It is likely to continue to do so as a virtuous cycle from income to spending is maintained. The domestic economy seems to be resilient on the whole. This is suggested by the fact that, although some weakness has been seen in private consumption and production, it is largely attributable to temporary factors; moreover, with corporate profits remaining at high levels, strong wage hikes have been observed, particularly among large firms. Reasons why the recovery pace of Japan's economy has been moderate despite real interest rates ... (full story)