Thereafter, however, with the impact of COVID-19 waning gradually, mainly due to the widespread vaccinations, the economy is likely to recover, supported by an increase in external demand, accommodative financial conditions, and the government's economic measures.
From the middle of the projection period that covers through fiscal 2023, Japan's economy is projected to continue growing, albeit slower, at a pace above its potential growth rate, as a virtuous cycle from income to spending intensifies in the overall economy, including the household sector.