The Bank of Japan said in its monthly report today that export and production have been rising along with increasing public investment. The bank added that the drop in business fixed investment is moderating, while housing investment gas decreased amid high unemployment and low income levels.

The bank added that the economy is likely to improve gradually, while it expected domestic and private demand to remain weak along with weak corporate earnings and increasing unemployment. Yet, the financial sector is showing sings of improvements, the BOJ said.