In fact, the International Monetary Fund (IMF) projected in its January 2023 World Economic Outlook (WEO) Update that Japan would achieve the highest growth among the G7 countries in 2023 (Chart 6). As background to Japan's economic outlook, the following are five key developments. First, the waning of supply-side constraints will make a positive contribution to exports and production.
Second, pent-up demand, which has recently been pushing up private consumption and business fixed investment, will continue to support the economy's recovery for the time being. Third, inbound tourism demand will increase, reflecting the government's relaxation of entry restrictions.