The Japanese economy remains in a "severe" situation amid the coronavirus pandemic, and the surging number of COVID-19 cases is causing a delay in the emergence of pent-up demand, a Bank of Japan board member said Wednesday.

Toyoaki Nakamura, who sits on the BOJ's Policy Board, said the Japanese economy is picking up as a trend but cautioned against downside risks due to the spread of the highly contagious delta variant during a virtual meeting with local business leaders in Miyazaki Prefecture.

Toyoaki Nakamura, a member of the Bank of Japan's Policy Board, during a virtual meeting with business leaders of Miyazaki Prefecture on Wednesday | KYODO
Toyoaki Nakamura, a member of the Bank of Japan's Policy Board, during a virtual meeting with business leaders of Miyazaki Prefecture on Wednesday | KYODO