Japan’s government downgraded its economic assessment amid rising downside risks from the current domestic and overseas infections and negative effects through the supply chains.
“The Japanese economy remains in picking up, although the pace has weakened in a severe situation due to the Novel Coronavirus,” the Cabinet Office said in its September report.
The government lowered its assessment of both private spending and industrial production.
The Cabinet Office said private consumption shows weakness further and industrial production is picking up, although some weakness is seen recently.
Further, the government repeated that business investment is picking up and exports continue to increase moderately.
The government reiterated that corporate profits are picking up, although some weaknesses remain in non-manufacturers due to the influence of the infectious disease.
On labor market, the government repeated that employment situation shows steady movements in some components such as job offers, while weakness remains, due to the influence of the infectious disease.
Regarding short-term prospects, the government said the economy is expected to show movements of picking up, supported by the effects of the policies and improvement in overseas economies while taking measures to prevent the spread of infectious diseases, and accelerating vaccinations.