The BOJ on Wednesday said the economy has almost stabilized, thanks to rising exports and production, but overseas share price falls and a weakening dollar threaten the economic outlook.
Despite sluggish business spending and household consumption, corporate sentiment and profits are rising on the strength of exports and industrial production, the Bank of Japan said, upgrading its assessment of the economy for the fifth consecutive month.
If the trend continues, the economy and domestic private demand will become more stable, but a strong rebound is unlikely, as excessive unemployment and debts continue to restrain growth, the BOJ said.