These developments in both sectors are projected to continue and it is highly likely that Japan's economy will continue to recover, with the impact of COVID-19 and supply-side constraints waning. In the latest Outlook Report, the Bank projects that the economy will continue to grow at a relatively high rate in the range of 1.5-2.0 percent from fiscal 2023 (Chart 3).
Nevertheless, uncertainties over the outlook for Japan's economy have heightened. Particular attention is warranted on risks surrounding developments in overseas economic activity and prices.