The government projected Tuesday that Japan's economy will return to a pre-coronavirus pandemic level later this year, expecting further acceleration of domestic vaccine rollouts and a strong recovery of the world economy to help it pick up faster.

The Cabinet Office forecast the nation's real gross domestic product to grow 3.7% in fiscal 2021 from the previous year to ¥546.0 trillion, which is slightly larger than the ¥545.3 trillion predicted in January.

In the January estimate, the government had said Japan's economy would recover to its pre-pandemic level in fiscal 2021, which ends in March next year.