The Japanese economy is turning to pick up, but it is only weakly self-sustaining, the Cabinet Office said Wednesday. It also said the influence of the massive earthquake raises concerns about the weak recovery.
In its monthly economic assessment report, the government maintained its view on Japanese exports, saying that the sector is showing movements of picking up.
Meanwhile, the government said industrial production picked up, raising its assessment from February. But it noted that the earthquake impact worries.
Further, it reaffirmed that corporate profits are improving and business investment is picking up. Moreover, firms' judgment on current business conditions shows a sign of caution.
The government reiterated that the employment situation remains severe, though movements of an incipient recovery can be seen. Private consumption is almost flat recently.
Citing recent price developments, the cabinet office continued to say that the Japanese economy is in a mild deflationary phase.
As for short-term prospects, the government expects the Japanese economy to pick up. But, it cautioned that the impact of the earthquake on the economy should be monitored.
It also pointed out downside risks that could stem from fluctuations in the financial and capital markets, the influence of a rise in oil prices and movements in overseas economies.
Further, the government estimated the cost of the March 11 earthquake and tsunami could reach $309 billion.
Today, the Bank of Japan board member Ryuzo Miyao said the disasters are likely to have a grave impact on the country's economy, at least in the near-term.
by RTT Staff Writer
Source: www.rttnews.com
In its monthly economic assessment report, the government maintained its view on Japanese exports, saying that the sector is showing movements of picking up.
Meanwhile, the government said industrial production picked up, raising its assessment from February. But it noted that the earthquake impact worries.
Further, it reaffirmed that corporate profits are improving and business investment is picking up. Moreover, firms' judgment on current business conditions shows a sign of caution.
The government reiterated that the employment situation remains severe, though movements of an incipient recovery can be seen. Private consumption is almost flat recently.
Citing recent price developments, the cabinet office continued to say that the Japanese economy is in a mild deflationary phase.
As for short-term prospects, the government expects the Japanese economy to pick up. But, it cautioned that the impact of the earthquake on the economy should be monitored.
It also pointed out downside risks that could stem from fluctuations in the financial and capital markets, the influence of a rise in oil prices and movements in overseas economies.
Further, the government estimated the cost of the March 11 earthquake and tsunami could reach $309 billion.
Today, the Bank of Japan board member Ryuzo Miyao said the disasters are likely to have a grave impact on the country's economy, at least in the near-term.
by RTT Staff Writer
Source: www.rttnews.com
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