The transmission mechanism by which increases in exports and production feed through into income and spending is likely to strengthen, and Japan’s economy is projected to grow at a pace above its potential in fiscal 2012 due in part to a rebound from the significant deceleration in fiscal 2011.
The Bank’s forecast for real GDP growth released for reference in the Outlook Report is 0.6 percent for fiscal 2011 and 2.9 percent for fiscal 2012.