The government maintained its assessment that the Japanese economy is “recovering moderately,” business agency Kyodo News reported on May 27.
The estimate has held up despite some delays, and the government has taken a more optimistic view of output after production rose after falling due to a data manipulation scandal in the auto sector.
The Cabinet Office said moderate economic growth would continue, but warned of the negative impacts of inflation, conflicts in the Middle East and developments in currency and other markets.
“Industrial production has recently shown signs of recovery, although manufacturing activity has weakened due to the impact of production and supply cuts by some automakers,” according to the monthly economic report, updated for the first time this year. fiscal.
Japan’s economy contracted 2.0% year-on-year between January and March, its first negative growth in two quarters. But economists expect a recovery in April-June.
Rising prices of consumer goods have hurt private consumption, which accounts for more than half of the economy, and a safety data scandal at Daihatsu Motor, a unit of Toyota Motor Corp, has caused temporary disruptions to production in some companies of the parent group, which has affected the entire economy. Auto industry.
“The Japanese economy is recovering at a moderate pace, although it appears to have stalled recently,” the report said, and the government used the same phrase for four months.
Most estimates for key components of the economy, from private consumption to business investment and exports, were maintained.
But the government raised its import estimate for the first time since April 2023, citing rising supplies from the United States and Europe, while its public investment estimate also rose as the government increased spending on public works.
Private consumption and exporters appear to be “pausing to recover,” while business investment is showing “growth movements,” the bureau said.
In the previous report, the government changed the wording on corporate commodity prices, which lag consumer prices, from “moderate growth” to “moderate growth.” This was the first change in eight months.
Source: Rossa Primavera
I am Michael Melvin, an experienced news writer with a passion for uncovering stories and bringing them to the public. I have been working in the news industry for over five years now, and my work has been published on multiple websites. As an author at 24 News Reporters, I cover world section of current events stories that are both informative and captivating to read.