We have confirmed that progress in terms of quantity has been slow in recent domestic capital investment.
This is attributed to disparities between nominal and real values, arising from rising raw material and labor costs. Additionally, the accumulation of order backlogs due to shortages of materials and manpower has contributed to this situation.
Considering the persistent strong corporate appetite for investment, we anticipate that this gradual pace of progress will lead to a sustained expansion in capital investment at a macro level. In addition, the shortages in manpower and production capacity will drive further investment in automation and efficiency.
It is worth noting that capital investment for automation purposes will support the potential growth rate amidst a declining population. Additionally, investments focused on improving efficiency are expected to result in increased labor productivity, thereby supporting sustained wage growth.