BOJ cautions of economic risks as COVID-19 lingers
Bank of Japan board member Toyoaki Nakamura had cautioned the country about the latest surge in COVID-19 infections’ impact to the economy. However, he expressed optimism that demand would pick up once consumers felt comfortable enough to start spending.
Japan will recover once the pandemic’s blow to economy diminishes and as a strong global demand, in addition to increased capital spending contribute to the growth, Nakamura said.
However, he noted that the outlook remained “highly uncertain” as pandemic restrictions continued to hit retailers.
Nakamura expressed confidence that once vaccines are completed, consumption will be boosted by pent-up demand, citing Japan’s record cash and bank holdings of 1,056 trillion yen ($9.61 trillion).
Economists projected a slow growth this quarter as restrictions weighed down family spending.
Japan mulls expanding a state of emergency to eight additional provinces, bringing the total to 21.