Japan's second-quarter GDP for 2023 has surged due to robust exports and a significant inflow of tourists, indicating that the country is emerging from its Covid slump. Japan relies heavily on imports for essentials like food and energy, and the yen's long-term decline against the dollar has raised costs, causing inflation levels not seen in decades. Additionally, if long-term interest rates reach 1%, a level the central bank currently permits for 10-year bond yields, roughly two-thirds of businesses expect an impact on their fundraising.