Bank of Japan Governor Haruhiko Kuroda expressed optimism Thursday about the country’s economic recovery amid the coronavirus pandemic.
“Economic activity has resumed, and the economy has recently been less effected by the coronavirus. Thanks to the government’s economic measures under the relaxed financial environment, we expect the economy to be on the right track,” Kuroda said.
Retail sales in Japan, the world’s third largest economy, fell 8.7% from a year earlier in September, according to data reported Thursday. While purchases of goods has recovered somewhat, services remain weak.
Speaking in Tokyo, Kuroda noted that “personal consumption” services such as restaurants and hotels were still stuck at a decreased level. The Japanese central bank has been pumping tens of billions of dollars into the economy every year, trying to restore stable growth as the country’s population shrinks and ages. Japan was already in recession when the pandemic began.