BOJ Nakamura: Japan's Economy Faces Longer Road To Recovery

Bank of Japan board member Toyoaki Nakamura said that the recovery path will be slower than the pace seen in July in updated comments on Wednesday of the growing downside risks to economy caused by the spread of Covid-19.

"The recent spread of coronavirus is beyond the view made in July and downward pressure on the economy will continue for the time being," Nakamura told reporters, elaborating on remarks made earlier in the day to business leaders in Miyazaki City via an online conference.

However, Nakamura said a faster pace of vaccinations will help the economy will move toward a recovery path again, though he does not expect a shortage of semiconductors that has hit automobile production to be eased within this year.

"Personally, I thought pent-up demand would have emerged in summer, but the timing of pent-up demand recovery is delayed to the end of this year or the early next year in the wake of the spread of coronavirus," Nakamura said.