Reuters reports that Bank of Japan board member Toyoaki Nakamura warned of risks to the economic outlook from a recent resurgence in COVID-19 infections.

But Nakamura said the economy is expected to recover as the pandemic's impact fades, pointing to the boost to growth from robust global demand and a recovery in capital expenditure.

The outlook was "highly uncertain" with risks skewed to the downside, the former corporate executive said, as state of emergency curbs to combat the pandemic hurt retailers.

But Nakamura signalled hope that once vaccinations proceed, consumption may get a boost from pent-up demand.

"The resurgence in infections may have somewhat delayed the timing for when pent-up demand materialises," he said in a speech on Wednesday, adding there was a chance economic activity may strengthen more than expected once the pandemic's impact eases.