Table 3: Economic forecast summary Calendar Year Quarterly 2015 2016 2017 2018} 2015 2016 2017 2018) 3016 4Q16 1Q17 2Q17 3017 4Q17 1018 (A) (F) (F) (F) (A) (fF) OF) Sf) (A) Real GDP (%,qoq ann.) 0.6 07 14 2 09 11 14 1.2 22 03 21 1.5 1.0 24 -0.1 Private Consumption (%,qoq ann.) -1.2 04 1.0 12 -0.1 06 11 13 0.2 1.0 1.2 1.0 14 14 08 Private Capex (%,qoq ann.) 1.6 06 17 3.2 2.1 07 24 29 0.1 50 86-08 14 25 70 3.1 Private Resid. Investment — (%,goq ann.) 25 53 03 11 24 64 -13 17 96 20 20 39 59 6.1 1.6 Government Consumption (%,qoq ann.) 1.2 1.6 08 1.0 16 11 09 11 17 08 0.6 1.2 08 08 08 Public Investment (%,qoq ann.) 25 -1.5 3.1 -2.1 21 09 14. Of 27 16 82 148 115 78 39 Exports of Goods & Services (%,goq ann.) 28 -0.3 53 3.1 04 09 58 23 8.1 45 45 59 11.0 46 = -3.0 Imports of Goods & Services (%,qoq ann.) 04 13 3.9 18 00 86-04 43 14 24 90 2.0 46 118 19 -16 Contribution points Domestic Demand (%,yoy) 0.2 05 12 09 08 08 11 1.0 0.2 11 17 1.2 11 13 0.2 Net Exports (%,yoy) 04 0.2 03 0.2 0.1 0.2 03 0.2 20 -08 04 02 -0.1 11-03 Industrial Production (%,qoq) 1.4 07 06 1.6 25 14 09 (%,yoy) -1.2 -0.8 3.5 3.6 -14 04 42 3.0 04 12 17 3.1 42 49 46 Nationwide BOJ-style Core CPI —_(%, yoy) 05 -0.3 1.0 14 00 8 -0.1 sy 14 05 -01 07 07 a) 14 14 Nationwide US-style Core CPI (%,yoy) 1.0 04 04 11 0.6 03 06 3 0.2 0.1 0.2 02 0.5 07 09 Unemployment Rate (%) 34 3.1 29 27 33 3.1 28 26 3.1 3.0 3.0 29 29 28 28 BoJ ST interest rate target (End of period) -0.1 -0.1 -0.1 -0.1 01 01 O01 -0.1 O01 01 O01 O11 O01 O01 -01 BoJ LT interest rate target (End of period) nla 0.0 0.0 0.0 nla 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Yen/$ (End of period) 120.2 108.0 120.0 115.0) 1126 1120 1150 1150) 1014 1080 1120 1150 1170 120.0 115.0 Yen/Euro (End of period) 130.6 116.6 126.0 121.0) 128.1 1176 1240 1210) 1139 1166 1176 1173 1193 1260 1240 Note: We may revise our forecasts once additional data become available. Sources: BoJ, MoF, ESRI of Cabinet Office(EPA), MPMHAPT(MCA), METI(MITI), Ministry of Land, Infrastructure and