Japan signaled a broader recovery in economic activity for the first time in three months in July, as the brunt of the Covid-19 pandemic continues to wane.
The improvement came in large part because the government has become more optimistic about consumption and employment, amid hopes that strength in consumer activity will help protect the economy from rising risks from slowing global demand.
“The economy is slowly recovering,” the government said in its July economic report, describing the world’s third-largest economy in a way it hadn’t done since May 2013.
The government has improved its view on private consumption, saying it is recovering slightly as it becomes more optimistic about spending on services such as transport.
Analysts have generally been less confident about Japan’s private consumption, which accounts for more than half of the economy, warning of the likelihood that rising prices are suppressing consumption.
The economy is expected to have resumed growth in the second quarter after a contraction from January to March, although the recovery has felt pressure from prolonged interruptions in the supply of high-tech parts and chips.
In the July report, the government improved its view on employment conditions, reporting an upward trend in the number of workers, adding that the number of women in regular employment is increasing.
Source: CNN Brasil
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