According to a poll of economists, Japan's economy will likely grow rapidly in the current quarter and the first three months of next year, as consumer and corporate activity recovers from the pandemic's toll.

However, the world's third-largest economy is facing uncertainty as global raw material and energy costs rise, with nearly all analysts predicting that these price changes will have a negative impact.

The median projection of nearly 40 economists suggested that Japan's gross domestic product (GDP) growth would grow an annualised 6.1% this quarter, significantly higher than the 5.1% predicted in last month's poll.

Japan downgrades assessment of economy to 'getting worse rapidly' | The  Japan Times

That rebound follows the Q3's 3.6% slump and would be welcomed by policymakers wanting to see the economy gradually shake off the impact of the health crisis following the relaxation of pandemic restrictions following a summer increase in COVID-19 cases.

According to the December 3-15 poll, growth in the first quarter of 2022 is expected to be 4.9% on an annualised basis, which is higher than the 4.2% predicted in last month's poll.

Last month, the government announced a $490 billion expenditure package to help mitigate the effects of the pandemic, defying a worldwide trend of unwinding crisis-mode stimulus.

Analysts believe the government's expenditure package, particularly its aim to restart a domestic tourist campaign, will assist private consumption, which accounts for more than half of GDP.

Despite this, the median poll forecast for the current fiscal year has been decreased to 2.8% from 3.1% last month, while the forecast for the following fiscal year has been lifted to 3.1% from 2.8%.