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.
Given these factors, in the Bank's October 2021 Outlook for Economic Activity and Prices (Outlook Report), the medians of the Policy Board members' forecasts for the yearon-year growth rate of real GDP are 3.4 percent, 2.9 percent, and 1.3 percent for fiscal 2021, 2022, and 2023, respectively (Chart 8).