Risks to the Outlook There are extremely high uncertainties over the outlook, and risks to economic activity are skewed to the downside for the time being. I am paying particular attention to the following two risk factors. The first is the sustainability of a rise in private consumption.
As mentioned earlier, private consumption for the time being is expected to be under downward pressure from the real income side but is projected to increase, supported by pent-up demand. That said, since pent-up demand is expected to materialize in services consumption in particular, including dining-out and travel, developments in such demand depend largely on the future course of COVID-19.