TOKYO (dpa-AFX) - Japan's economy is likely to continue to face a severe situation for the time being, especially with respect to exports, Bank of Japan Governor Masaaki Shirakawa said Monday.
The economy is expected to return to a moderate recovery path after slowing for the time being.
'In the current time of high uncertainty regarding the future prospects of overseas economies, due attention is necessary to the risk that the yen's appreciation will dampen future growth through a decline in exports and corporate profits as well as a deterioration in business sentiment,' Shirakawa told business executives in Nagoya.
'This is the very reason that the Bank has embarked on monetary easing measures twice since this summer,' he added. The central bank governor expressed his determination to support sustainable growth through pursuing powerful monetary easing.
Shirakawa said the risks that the impact of the recent appreciation of the yen on the economy warrants due attention. At the same time, he pointed out that the strong yen improves the purchasing power of firms and households by lowering imported costs of energy.
Copyright RTT News/dpa-AFX
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