• European economy is slowing gradually
• China’s economy is experiencing a prolonged slowdown (debatable)
• Japan’s economic growth is leveling off as exports and imports weaken, but will return to a moderate recovery
• US economy is gradually improving
• Worsening European debt crisis is causing turbulence in markets
• Concerned that companies may delay investment due to slowdown
• BOJ is pursuing powerful monetary easing
• Need to achieve sustainable growth with price stability