Japan worsened its outlook on the overall economy for the first time in 11 months in January, as Covid-19 infections in China and a slowdown in global demand for technology and semiconductors hurt exports, especially to Asia.
The government expects the economy, the world’s third-largest, to continue advancing, but Japan needs to pay full attention to the impact of infections in China after restrictions to combat the pandemic are lifted, the Cabinet Office report said on Wednesday. (25).
The economic downgrade followed the move by the Bank of Japan last week when it cut its economic growth forecasts for the next two fiscal years amid concerns that slowing global demand will weigh on Japan’s export-oriented economy.
“The economy is recovering moderately, but some weakness is seen recently,” the report noted.
Officials downgraded their view on exports for the first time since November 2011, while also trimming their view on imports for the first time in three months.
The January report said both exports and imports are “weakening recently”, compared with their previous view of “nearly flat” last month.
Source: CNN Brasil
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