MNI: Japan Govt Keeps Econ Assessment; Upgrades Exports
MNI (TOKYO) - Japan’s government left its overall economic assessment in February for the seventh straight month but upgraded its view on exports for the first time since August 2023, the Cabinet Office said on Wednesday.
The assessment on imports was lowered for the first time since March 2024. The assessments on other major components, such as private consumption, capital investment and production, were left from the previous month.
However, a senior official at Cabinet Office warned of weak consumer sentiment hit by high prices and attention should be paid to its impact on private consumption.
The government said that the Japanese economy is recovering at a moderate pace, although it recently appears to be pausing in part.
It said that exports “have been showing movements of picking up recently.” The previous view was “exports are almost flat.”
The government said that imports are almost flat, altered from its previous view that they showed signs of recovering.
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 slowing down of overseas economies represents 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 the real-estate market in China.
It also said that full attention should be given to “the effects of price increases, policy trends in the U.S., such as trade policy,” the situation in the Middle East and fluctuations in the financial and capital markets.
The government left its assessment on overseas economies for the eighth straight month, noting that overseas economies are recovering, although stagnation is observed in some regions.