Business enterprises in general are reporting good results for the business year through March 2013 on the back of a weaker yen and brisk stock transactions. It is important for both the government and companies to make efforts to translate the good business performance into increased employment and wages. To ensure sustainable economic growth, expansion of consumption supported by better wages and employment is indispensable.
While the weak yen is helping export-oriented companies, it is adversely affecting companies that have to import a large amount of raw materials. The government must consider ways to offset the negative effects that an excessively cheap yen will exercise on the whole Japanese economy.
Toyota Motor reported consolidated operating profit of ¥1.32 trillion for the 2012 business year, about 3.7 times the corresponding figure for the 2011 business year. Toyota's car sales worldwide increased by about 20 percent to 8.87 million units. This shows that the weak yen resulting from the Bank of Japan's massive monetary easing greatly helped Toyota increase its operating profit.