Maintaining Current Exchange Rate Important for Japan, Shirai Says

The video discusses the current state of Japan's economy, highlighting the divergence between the manufacturing and non-manufacturing sectors. While manufacturing is slowing, non-manufacturing sectors like construction and tourism are thriving, supporting moderate economic growth. The export sector faces challenges with declining profits, emphasizing the importance of maintaining a stable exchange rate. The yen's performance against the US dollar is crucial, with potential actions needed if it appreciates too much.

What is one reason the non-manufacturing sector in Japan is performing well?

• High demand for electronics

• Increased agricultural output

• Growth in the automotive industry

• Boom in construction activities

What is a significant challenge facing the Japanese export sector?

• Increased competition from China

• Decline in export volumes

• Lack of innovation

• Rising labor costs

Why is maintaining the current exchange rate important for Japan?

• To reduce inflation

• To stabilize manufacturing sector profits

• To boost tourism

• To increase foreign investments

What could prompt the Bank of Japan to take action regarding the yen?

• A significant appreciation of the yen

• A drop in domestic consumption

• A decrease in foreign reserves

• An increase in interest rates

How is the yen expected to perform against its peers in 2019?

• It is expected to depreciate by 5%

• It is expected to remain stable

• It is expected to gain about 3%

• It is expected to lose value