TOKYO, Oct 15 (Businesshala) – Japan lowered its outlook on exports for the first time in seven months in its October economic report as Asia-bound shipments of cars and electronic parts peaked amid supply chain disruptions and China’s economic slowdown. But it was.
Yet the government maintained its overall economic assessment, pointing to signs of recovery in private consumption, particularly in service spending, as the COVID-19 state of emergency is lifted due to a sharp drop in infection numbers nationwide. Was.
In its monthly report released on Friday after Prime Minister Fumio Kishida’s cabinet approval, the government said “the economy continues to boom but the pace of recovery is slow.”
On the outlook, the latest report placed greater emphasis on the risks posed by supply chain-related issues than the spread of COVID-19 at home and abroad, with the former warning of the need for “close attention”.
Earlier, the government downgraded its outlook on production in September, when a rapid rise in coronavirus cases disrupted auto plants in Southeast Asia.
“The impact of the supply chain (issues) can now be seen in exports, so it has been downgraded this month,” a government official told reporters before the cabinet approved the report.
The official cited slow shipments of cars, electronics and other IT-related goods, as well as concerns about a slowdown in China’s economic recovery.
Executives maintained their valuations of most key economic elements, including business spending, corporate profits and employment. Public investment was downgraded based on falling construction orders.
The report comes a day after Japan’s new leader Kishida dissolved the lower house of parliament to set the stage for a general election on 31 October.
Kishida’s ruling party, which is expected to defend a majority of seats in the election, will likely compile a massive stimulus package worth tens of trillions of yen to bolster the country’s economic recovery from the pandemic. (Reporting by Kantaro Komiya; Editing by Kim Coghill)