Haruhiko Kuroda, the governor of the Bank of Japan, stated on Monday that the country's economy would likely rebound to pre-coronavirus pandemic levels in the first half of 2022.

In a speech to business executives in Nagoya, central Japan, Kuroda said, "the economy's recovery has been somewhat slower than initially expected. However, the economic recovery mechanism remains intact." 

“Japan's economic recovery is being delayed somewhat. I am closely watching the impact of Covid-19,” Kuroda said, adding “the BoJ won't hesitate to add easing if necessary.”

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Japan's Economy Minister Yamagiwa said in a GDP statement that the economy is still growing, but the pace is slowing and policy support is required.

“The economy is expected to improve in the coming months as a result of global recovery and the resumption of economic activity.”

“Downside risks from global supply constraints, rising commodity prices, and the resurgence of Covid-19 must be considered,” he said.

“We will put together a robust economic stimulus package to ensure stronger growth. Measures to address high energy prices, chip shortages, and other supply issues will be included in the economic stimulus package,” Yamagiwa stated.