MNI: Japan's Govt Maintains Economic View, Global Outlook Dims

Japan's government maintained its assessment of the domestic economy for the sixth straight month but lowered its view on the global economic outlook for the first time since August, the Cabinet Office said on Wednesday.

“The Japanese economy is picking up moderately,” the government said. However, the government lowered its assessment on production for the first time since June. It said the recovery in industrial production was at a standstill. The previous view was “industrial production shows movements of picking up.” The assessment of other economic components was unchanged from the previous month.

The downward revision of the world economy was consistent with the Bank of Japan’s decision on Tuesday to lower its assessment of overseas economies due to weaker Chinese growth. The report said the world economy was recovering moderately, although growth had come to a standstill in some regions such as the China and the South Korea.

Despite the rise in the Consumer Price Index, the government left its assessment of inflation unchanged by noting “consumer prices are rising.”

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

“Also, full attention should be given to price increases, supply-side constraints and fluctuations in the financial and capital markets and infection trends in China,” it said.