Downside risks in the form of still elevated retail inflation, continued weak economic performance, uncertainty surrounding global economic recovery, potential slowdown of capital flows to EMEs once interest rate cycle in advanced economies reverses, geopolitical  BIS central bankers’ speeches  3  risks, etc., remain.
A major reason for Japan's low potential growth rate relative to the United States and European countries lies in the fact that it expects fewer immigrants and this is reflected in a lower expected increase in its working population. One way to raise Japan's potential growth rate is evidently to ease restrictions on immigration.