Outlook for Economic Activity and Prices

Although the level of Japan’s economic activity, mainly in the face-to-face services sector, is expected t be lower that that prior to the pandemic for the time being, the economy is likely to recover, with the impact of the nove coronavirus (COVID-19) waning gradually and supported by an increase in the external demand, accommodative financial conditions, and the government’s economic measures. Thereafter, as the impact subsides, its is projected to continue growing with a virtuous cycle from income to spending intensifying. The year-on-year rate of change in the consumer price index (CPI, all items less fresh food) … (full story)

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