BoJ Sees Moderate Increase In Exports, Investment

Japan's exports will likely increase moderately going forward, while investment may pick up gradually due to reconstruction-related demand, the Bank of Japan said in its monthly report published Wednesday.
Exports and production are expected to remain more or less flat for the time being and increase moderately thereafter, mainly reflecting a pick-up in the pace of recovery in overseas economies, the central bank said.

Business fixed investment may continue a "moderate increasing trend," as firms try to restore and reconstruct disaster-stricken facilities. However, business investment will be affected by the slowdown in overseas economies for the time being, it said.

Housing investment and public investment are expected to increase gradually, due to reconstruction-related demand.

The central bank reiterated that Japan's economic activity will remain more or less flat for the time being and the economy will return to a moderate recovery path as growth in overseas economies picks up.
The Bank of Japan unexpectedly eased monetary policy on Tuesday by increasing the size of its asset purchase by JPY 10 trillion to JPY 30 trillion, after the economy contracted more than expected in the fourth quarter.