Japan revises economic indicators to decrease
2023.01.25 05:34
Japan revises economic indicators to decrease
By Tiffany Smith
Budrigannews.com – In January, China’s COVID-19 infections and a slowdown in global demand for technology and semiconductors harmed exports, particularly to Asia, prompting Japan to lower its overall economy outlook for the first time in 11 months.
According to the report, while the government anticipates that the world’s third-largest economy will pick up in the future, Japan must pay close attention to the impact of China’s infection-spreading after it dropped strict pandemic curbs.
The Bank of Japan cut its economic growth projections for the next two fiscal years last week, citing concerns that Japan’s export-dependent economy will be harmed by slowing global demand. This move was followed by the economic downgrade.
The Cabinet Office’s most recent report states, “The economy is recovering moderately, but some weakness is seen recently.”
The government lowered its assessment of exports and imports for the first time in three months and for the first time since November 2011. Both exports and imports are “weakening recently” in comparison to its previous assessment of “almost flat” in January, according to the report.
A Cabinet Office official stated, “China’s coronavirus rebound could affect Japan’s exports and production, and such a possibility has become clearer than last month.”
In addition, despite monetary tightening, inflation, and fluctuations in the financial market, the government remained cautious regarding the downside risks posed by the slowdown in the global economy.
In the meantime, the Cabinet Office maintained its assessment of Japan’s domestic demand, stating in the most recent report that private consumption was “picking up moderately.”
However, the government maintained its belief that industrial production recovery was stalling in December.
