It is still unclear how COVID-19 will affect domestic and overseas economies, partly due to the emergence of a new variant named Omicron. As I will mention later, the outlook for the global economy also is unclear because of various factors such as inflation.
Since we are in this highly uncertain situation, I would like to first explain the baseline scenario of the outlook for Japan's economy and then elaborate on risk factors that could cause a deviation from the scenario (Chart 1).