MNI POLICY: Japan Govt Keeps Economic View; Ups Spending

Japan's government on Friday retained its economic assessment from September but upgraded its view of private spending for the first time in three months, following the recovery.

"The Japanese economy is still in a severe situation due to the novel coronavirus, but it is showing signs of picking up," the government said in its report.

It is the fourth straight month the government has made no changes to its economic assessment

"Private consumption is picking up," the report said. The previous view was "Private consumption is picking up, while weakness can be seen in some sectors."

IMPORTS

The government lowered its assessment of imports for the first time in seven months, reflecting weak domestic demand. "Imports are weakening," the report said. The previous view was that imports are "largely unchanged."

The government left its near-term outlook largely intact, saying the economy is expected to pick up supported by policies and the improvement in overseas economies and as socio-economic activity resumes with measures to prevent the spread of covid-19.

It also said that attention should be given to the "situation in domestic and overseas infections and the effect of fluctuations in financial and capital markets.