BOJ Governor Ueda Kazuo (植田 和男) noted that domestic investment is picking up against a backdrop of labor shortages. He also commented on trends in domestic and foreign investment and the outlook for the external balance.
BOJ Governor Ueda Kazuo (植田 和男) said at an IMF event in the United States that Japanese companies are increasing domestic investment as they face labor shortages, and that corporate risk-taking is beginning to awaken.
From the perspective of the current account, he noted that Japan's substantial net external assets would allow overseas investment to maintain a higher rate of return than domestic investment. He indicated that the surplus in the primary income balance would continue to be a pillar of Japan's external balance.
In response to signs of structural changes, such as declining long-term growth expectations, Japanese companies have recently stepped up domestic investment, with capital investment reaching a level above its peak in the early 1990s. Bank lending growth exceeded 5%.