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The Japanese government reports that the economy is still in a “gritty situation”, but it is recovering

The Japanese government reports that the economy is still in a "gritty situation", but it is recovering

According to the Japanese News Agency on the 26th, the Japanese government’s monthly economic report released on Wednesday has maintained a constant view of the economy in general, but lowered expectations for business investment.

“Japan’s economy is still in a tough situation due to the coronavirus, but it is showing a rebounding trend,” the Japanese Cabinet released in November.

The report pointed out that the Japanese government has made the same description of the overall economy for five consecutive months, and the report was submitted to the meeting of economic officials on the same day.

A Japanese cabinet official said that given the low amount of software spending, corporate investment is “increasingly likely to deteriorate”. Although the Japanese government maintains its view of corporate profits, it changes the wording and mentions that the profits of large enterprises have “slid less”.

Meanwhile, the Japanese government raised its assessment of industrial output for the first time since September last year, saying that the industry is “warming up”. The October report said that production “shows a rebound trend”. The official said that the reason for the upward revision of the estimate was Japan’s strong exports to other Asian countries and the United States, mainly automobile exports, and domestic demand.

In addition, the Japanese government has maintained its assessment of private consumption, although officials say that private consumption is returning to roughly the same level as that of the past three years.

The official also said that consumption in the service industry is recovering, mainly in tourism and catering, but it is still at a low level. The official also said that attention should be paid to the impact of the new wave of COVID-19 at home.

The Japanese government, in general, kept its view of economic outlook unchanged, saying that the economy is “expected to show a rebound”, while reiterating its call for a comprehensive focus on the “further downside risks” that the resurgence of the novel coronavirus in Japan and abroad will bring to the domestic and foreign economies.

The official also warned that the relevant epidemic prevention restrictions in European countries will have an impact on Japanese exports.

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