• Japan GDP may have contracted in Q4 last year, but that was likely temporary dip
• Japan likely to continue moderate recovery this year on solid growth in emerging markets
• Delay in US job, housing market recovery, Europe debt woes are risks to Japan economy
• Instability in global economy may effect Japan economy, including through forex markets
• Cannot rule out risk of US economy slipping into deflation
• Optimistic that China can achieve a soft landing in its economy
• Japan economy likely to grow above 3% in year ending March
• Likely to grow 1-2% in year beginning in April