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Outlook for Economic Activity and Prices
Japan's economy is likely to recover as downward pressure stemming from the novel coronavirus (COVID-19) on services consumption and the effects of supply-side constraints wane, while being supported by an increase in external demand, accommodative financial conditions, and the government's economic measures. Thereafter, as a virtuous cycle from income to spending intensifies in the overall economy including the household sector, Japan's economy is projected to continue growing at a pace above it's potential growth rate. • The year-on-year rate of change in the consumer price index (CPI, all items less fresh food) ... (full story)