Two Factors Affecting Future Developments in Exports -- inventory adjustments in IT-related goods and the impact of the terrorist attacks in the U.S. --

Ko Nakayama
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Ko Nakayama: Bank of Japan

Bank of Japan Review Series from Bank of Japan

Abstract: Japan's economy continues to be in a severe adjustment phase from the effects of the substantial decline in exports since the beginning of this year. The continuing decline of exports to date is due not only to the rapid deceleration in the world economy lead by the U.S., but also to inventory adjustments in IT-related goods worldwide along with the contraction of final demand in the IT-related sector. In the following, we will discuss prospects of the Japanese economy, especially from the viewpoint of Japan's exports, taking into account the following two factors: (1) the severe adjustments in the IT-related sector and synchronized deceleration of the global economy and (2) the impact of the terrorist attacks of 11 September.

Date: 2001-11
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