With slow improvement of demand around the globe, the Japanese government upgraded its view on exports and output for the month of August which is a second straight month of such an upgrade. Authorities have however cautioned that global and national economic conditions are still severe because of the impact of the novel coronavirus pandemic.
However the overall assessment of the third largest economy of the world as “showing signs of picking up” after being pushed in to a deep recession because of the pandemic was left unchanged by Japan.
“The Japanese economy remains in a severe situation due to the novel coronavirus, but it is showing signs of picking up recently,” the government said in its economic report for August.
The government is now hopeful that the uptick in the economy will continue because of the impact of the policy measures implemented at home as well as improvements in economic activity overseas, said Japanese authorities.
However policy makers and businesses should also accord attention to the continued risks of continued infections of the coronavirus potentially weighing down on domestic and overseas economies, Japanese authorities also cautioned.
In the second quarter, the biggest economic slump on record for Japan was recorded according to data published earlier this month. The pandemic hit to the economy severely hit corporate and household activity and pushed the size of the country’s real gross domestic product size to record lows in decades.
While there has been some recovery in the Japanese economy since the lifting of the pandemic induced lockdown in late May, achieving or even expecting an economic recovery to pre-coronavirus levels will not be possible soon enough because of a renewed rise in infections has made consumers cautious about spending, said some analysts.
Better economic activity among major trading partners underpinned the more optimistic view on exports by Japanese authorities as the country’s exports of car related goods to the United States was boosted , the government said.
Compare to May, there was a 7.6 per cent growth in world trade in June according to the CPB Netherlands Bureau for Economic Policy Analysis, but the volume of exports was still much lower than pre-virus levels.
For the month of June, an uptick in output among Japanese manufacturers and service-sector firms was helped by the improvement in exports of the country.
The government kept its assessment of the remaining components of the report unchanged.
(Source:www.nytimes.com)
However the overall assessment of the third largest economy of the world as “showing signs of picking up” after being pushed in to a deep recession because of the pandemic was left unchanged by Japan.
“The Japanese economy remains in a severe situation due to the novel coronavirus, but it is showing signs of picking up recently,” the government said in its economic report for August.
The government is now hopeful that the uptick in the economy will continue because of the impact of the policy measures implemented at home as well as improvements in economic activity overseas, said Japanese authorities.
However policy makers and businesses should also accord attention to the continued risks of continued infections of the coronavirus potentially weighing down on domestic and overseas economies, Japanese authorities also cautioned.
In the second quarter, the biggest economic slump on record for Japan was recorded according to data published earlier this month. The pandemic hit to the economy severely hit corporate and household activity and pushed the size of the country’s real gross domestic product size to record lows in decades.
While there has been some recovery in the Japanese economy since the lifting of the pandemic induced lockdown in late May, achieving or even expecting an economic recovery to pre-coronavirus levels will not be possible soon enough because of a renewed rise in infections has made consumers cautious about spending, said some analysts.
Better economic activity among major trading partners underpinned the more optimistic view on exports by Japanese authorities as the country’s exports of car related goods to the United States was boosted , the government said.
Compare to May, there was a 7.6 per cent growth in world trade in June according to the CPB Netherlands Bureau for Economic Policy Analysis, but the volume of exports was still much lower than pre-virus levels.
For the month of June, an uptick in output among Japanese manufacturers and service-sector firms was helped by the improvement in exports of the country.
The government kept its assessment of the remaining components of the report unchanged.
(Source:www.nytimes.com)