The real GDP growth rate is projected to be 2.8 percent for fiscal 2021, 3.8 percent for fiscal 2022, and 1.1 percent for fiscal 2023.
Specifically, Japan's economy is likely to follow a recovery trend as downward pressure stemming from COVID-19 on services consumption and the effects of supply-side constraints wane.
The recovery trend is also supported by an expansion in external demand, accommodative financial conditions, and the government's economic measures.
With the impact of COVID-19 subsides, the economy is expected to show higher growth.
Regarding the outlook for prices, the year-on-year rate of change in the CPI for all items less fresh food is expected to be 0 percent for fiscal 2021, 1.1 percent for fiscal 2022, and 1.1 percent for fiscal 2023.
