Acceleration in the vaccine rollout will help Japan’s economic activity to improve more than expected, Deputy Governor of the Bank of Japan Amamiya Masayoshi said on Wednesday.
In other countries where vaccinations are progressing ahead of Japan indicates that private consumption, including that of face-to-face services, is expected to pick up again in Japan, Amamiya said at a meeting with local leaders in Niigata.
It is projected that the virtuous cycle that has started to operate in the corporate sector will spread to the household sector, thereby intensifying the cycle in the overall economy, he said.
Further, corporate profits are forecast to continue improving on the whole on the back of a recovery in domestic and external demand, despite being pushed down by cost increases. An uptrend in business fixed investment is expected to become clear, Amamiya noted.
The risks to the outlook for economic activity are skewed to the downside for the time being, Amamiya observed.
The banker said the bank will pay attention to future price development and their impact on the economy. The BoJ will continue to closely examine developments in economic activity at home and abroad, he added.