Prime Minister Shinzo Abe attended a meeting of the Ministerial Council on Monthly Economic Report and Other Relative Issues at the Prime Minister's Office.

The Monthly Economic Report for December assesses the current state of the Japanese economy, stating that "The Japanese economy is on the way to recovery at a moderate pace. And prices are holding firm (the state is no longer at the stage of deflation)."

On prospects for the economy, it states "Recovery is expected to take hold as household income and business investment continue to be on upward trends, while exports begin to pick up and the effects of the policies develop. However, slowing down of overseas economies is still a downside risk of the Japanese economy. A last-minute rise in demand before a consumption tax increase and subsequent negative reaction are expected."

After receiving the report at today's meeting, the Prime Minister said,

"It will soon be one year since the inauguration of my Administration on December 26 last year. The Abe Cabinet has made an all-out effort on the 'three arrows,' setting the overcoming of deflation and economic revitalization as matters of the utmost priority.
The Japanese economy experienced tremendous negative growth last year. Many indices now show an upswing, including consumption, production, corporate profits, employment, and so on. Positive growth is taking hold. Even looking at regional economies, the economy is improving in all regions, and the business sentiments of corporations as well have widely improved, including for small- and medium-sized enterprises (SMEs). In this way, the movements of economic recovery are spreading.
In today's Monthly Economic Report, Senior Vice-Minister Nishimura reported that for the first time in four years, Japan was not said to be in a 'deflation.' Our economy is taking steady steps toward overcoming deflation.
We must proceed along the current path without losing our way and completely overcome the deflation that has become pervasive in every corner of Japan.
This is the only path open to us. I request that the Government and ruling parties continue to work together and exert every effort to advance polices next year as well."