MNI: Japan Govt Lowers Econ View, Exports Weaker On China

Japan's government lowered its main economic assessment from the previous month for the first time since February 2022 and also lowered its assessment of the world economy for the second straight month, the Cabinet Office said on Wednesday.

The government also lowered its assessment of exports, hit by the slower Chinese economy, for the first time since November 2021.

The government said that the Japanese economy is picking up moderately, “although some weakness have been seen recently.”

An official at the Cabinet Office told reporters that “some weakness” meant slower exports. “The Chinese economy showed weakness due to the increase of infections and careful attention should be paid to its impact on (Japan’s) exports and production,” she said.

The government said “exports have been in weak tone recently.” The previous view was “exports are almost flat.”

It said the world economy continues to recover moderately, “although some weaknesses have been seen in some regions,” such as the China and Taiwan.

The previous view was “although some standstill was seen in some regions,” such as the China and the South Korea.

The assessment of other economic components was largely unchanged from the previous month. Despite elevated rise of consumer price index, the government left its repeated its assessment that “consumer prices are rising.”

As for the near-term outlook, the government maintained its optimistic view, saying that the economy is expected to show movements of picking up, supported by the effects of the policies under the “new normal.”

The government, however, warned, “slowing down of overseas economies is a downside risk for the Japanese economy amid ongoing global monetary tightening and other factors.” It also said that full attention should be given to price increases, supply-side constraints and fluctuations in the financial and capital markets and “the spread of infectious diseases in China.”