The outlook for Japan's economy is that, for the time being, downward pressure stemming from the novel coronavirus (COVID-19) is likely to remain on services consumption, and exports and production are expected to decelerate temporarily due to supply-side constraints. Thereafter however, with the impact of COVID-19 waning gradually, mainly due to the widespread vaccinations, the economy is likely to recover, supported by an increase in external demand, accommodative financial conditions, and the governments's economic measures. From the middle of the projection period, as a virtuous cycle from income to spending ... (full story)