cuts that decrease value - added of firms have not been observed widely yet. c. outlook for economic activity and prices now i would like to explain the policy board members'baseline scenario regarding the outlook for economic activity and prices. japan's economy is likely to follow an improving trend with the impact of covid - 19 waning gradually, but the pace is expected to be only moderate. thereafter, as the impact subsides globally, the economy is projected to keep improving further with overseas economies returning to a steady growth path. given these factors, in the bank's january 2021 outlook for economic activity and prices ( outlook report ), the forecasts of the majority of policy board members for the real gdp growth rate are in the range of minus 5. 7 to minus 5. 4 percent, 3. 3 to 4. 0 percent, and 1. 5 to 2. 0 percent for fiscal 2020, 2021, and 2022, respectively ( chart 7 ). as for the outlook for prices, the year - on - year rate of change in the core cpi is likely to be negative for the time being, mainly affected by a widening of the negative output gap and the temporary price declines that i noted earlier. thereafter, it is expected to turn positive and then increase gradually, since downward pressure on prices is projected to wane gradually along with economic improvement and as the effects of such factors as the decline in crude oil prices are likely to dissipate. in the january outlook report, the forecasts of the majority of policy board members for the year - on - year rate of change in the core cpi are in the range of minus 0. 7 to minus 0. 5 percent, 0. 3 to 0. 5 percent, and 0. 7 to 0. 8 percent for fiscal 2020, 2021, and 2022, respectively ( chart 7 ). the risk of an overall and sustained decline in prices is judged as not significant at present. however, the level of corporate profits is expected to be lower than that prior to the covid19 outbreak, and the employment and income situation is likely to remain weak for the time being. this is because it is more likely to take time for the economy to recover, mainly for the nonmanufacturing industry, due to the recent resurgence of covid - 19. in addition, a decline in actual prices is prone to have stronger effects on people's perception of prices in japan than in the united states and europe, given that japan

end of 2020 amounted to 667 trillion yen, exceeding 591 trillion yen at the end of 1989, which was within the bubble period. 5 over the same time frame, the number of listed firms increased by about 1, 000. this suggests that listed firms as a whole have not achieved growth in terms of the average capitalization per firm. market capitalization reflects investors'growth expectations. for those expectations to be grounded in fundamentals, listed firms have to realize investors'growth expectations and raise investment funds to this end. based on the data from the u. s. national venture capital association and pitchbook. based on the data from venture enterprise center. firms listed on the first section of the tse as of the end of 2020 include the 37 firms that listed on july 16, 2013, with the integration of the cash equity markets of the tse and the osaka securities exchange. recently, more cases have started to be seen where overseas investment and vc funds invest in startups in japan. in this regard, prime minister suga declared in his policy speech the creation of a framework for financial markets that attract green investment at home and from abroad. 6 i hope that the direct financing market will increase in size and liquidity as a market in which a wide range of investors supply long - term funds to support firms'growth. i also expect investment for startups by vc funds to be active, mainly because the growth areas of japan's economy - - namely, digital and green areas - - are clear now. e. expected roles for indirect financing next, i would like to touch on indirect financing, in which firms raise funds from financial institutions. japan's advantage lies in the fact that there is an infrastructure needed for economic growth ; that is, necessary working capital and business fixed investment funds are supplied steadily through financial institutions to firms. however, the business environment facing regional financial institutions has grown more challenging due to the impact of covid - 19 in addition to structural factors such as the declining birthrate, aging population, and population outflow, as well as the continued low interest rate environment. amid these circumstances, the bank decided in 2020 to introduce the special deposit facility to enhance the resilience of the regional financial system. the aim of this facility is to encourage regional financial institutions'initiatives to strengthen their business foundations so that they may firmly support regional economies into the future and smoothly fulfill their financial intermediation function. let me express my view with regard to the regional financial system