Current Situation I will begin my speech by talking about recent developments in economic activity in Japan. Japan's economy, despite being affected by factors such as high commodity prices, has picked up as the resumption of economic activity has progressed while public health has been protected from COVID-19.
The pace of recovery had remained moderate in Japan, partly because steps to resume economic activity had been taken more cautiously than in other advanced economies; nevertheless, real GDP growth has almost recovered to levels seen before the pandemic (Chart 1). Let me explain the current state of Japan's economy in more detail. First, a look at the household sector.