Japan’s economy likely to recover although activity remains low compared with pre-pandemic levels.
Japan's consumer inflation likely to hover around 0% for time being.
Japan's consumer inflation likely to gradually accelerate thereafter.
Japan's economy remains in severe state but picking up as a trend.
Japan's economic outlook highly uncertain, swayed by pandemic developments
Exports, output have continued to increase steadily.
Risks to Japan’s economic outlook skewed to downside for time being, balanced longer term.
High uncertainties over consequences of COVID-19.
Japan's medium-, long-term inflation expectations moving sideways.
Downward pressure on economy may increase due to COVID-19 including variants.
Spending appetite of firms, households may not increase easily if long-term growth expectations decline due to COVID-19 shock.
If COVID-19 has larger-than-expected impact, there is a risk that deterioration in real economy will affect financial system stability.
Firms’ price cuts aimed at boosting demand are not likely to be seen widely.
Future developments in forex rates, international commodity prices, import prices continue to warrant attention.
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