MNI: Japan Govt Keeps Econ Assessment; Tweaks Bankruptcies
MNI (TOKYO) - Japan’s government left its overall economic assessment in January for the sixth straight month but tweaked its view on bankruptcies for the first time since September 2024, the Cabinet Office said on Thursday.
The assessments on other major components, such as exports, private consumption, capital investment and production, were left from the previous month.
The government said that the Japanese economy is recovering at a moderate pace, although it recently appears to be pausing in part.
The number of bankruptcies is largely flattening, it added, in contrast to the previous view that held the rising pace of bankruptcies was slowing. The number of bankruptcies caused by labour shortages had increased.
“Private consumption shows movements of picking up, although it remains pausing in part as income conditions are improving," the government said. Exports are almost flat and consumer prices have been rising, the office added.
As for the near-term outlook, the government maintained its optimistic view, saying that the economy is expected to continue recovering at a moderate pace with the improving employment and income situation, supported by the effects of its policies.
However, the government maintained its cautious view, noting the slowing down of overseas economies remains a downside risk to the Japanese economy, including the effects of continued high interest rate levels in the U.S. and Europe, and the lingering stagnation of China's real-estate market.
“Full attention should be given to price increases, the situation in the Middle East and fluctuations in the financial and capital markets,” the office stressed.
The government left its assessment on overseas economies for the seventh straight month, noting they are recovering, although it observed stagnation in some regions.
However, it warned that attention should be paid to U.S. economic policy and the Middle East situation, and their impact on financial and capital markets.