Wednesday, October 27

BOJ Kuroda: Japan economy to reach pre-COVID levels year-end or early 2022

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TOKYO — Japan’s economy will continue to recover and could reach levels seen before the coronavirus pandemic by the end of this year or early in 2022, Bank of Japan Governor Haruhiko Kuroda said on Thursday.

Steady progress in vaccinations and an end to state of emergency curbs to combat the pandemic are likely to lead to a recovery in consumption in the coming months, he said.

“All in all, consumption, which has been quite weak, will gradually step up,” Kuroda said in an online seminar hosted by the European Central Bank on Wednesday, or early on Thursday Tokyo time.

The corporate sector is also enjoying a “firm situation” that is translating into a pick-up in capital expenditure, Kuroda said, brushing aside concerns that supply bottlenecks could hit output at Japanese manufacturers.

Asian factory shutdowns caused by the pandemic are likely temporary and could be fixed in the coming months, he said. (Reporting by Leika Kihara; Editing by Hugh Lawson)

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