Turning to the outlook for Japan's economy, as shown in Chart 7, the medians of forecasts made by the Bank of Japan's Policy Board members for real GDP growth rates presented in the July 2019 Outlook for Economic Activity and Prices (Outlook Report) are 0.7 percent for fiscal 2019, 0.9 percent for fiscal 2020, and 1.1 percent for fiscal 2021.
The greater soundness and flexibility of the system derive above all from the reorganization and capital strengthening of intermediaries prompted in many countries by the public authorities since the second half of the 1990s. The strong expansion of the bond market, which has allowed firms to supplement bank loans with funds raised directly from savers, has contributed to the stability of the system.