Japanese gov't maintains view of "worsening" economy

0 Comment(s)Print E-mail Xinhua, April 7, 2020
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TOKYO, April 7 (Xinhua) -- The Japanese government maintained its view that the economy is "worsening," marking the seventh consecutive month such an assessment has been made, the Cabinet Office said in a report on Tuesday.

According to a preliminary report from the Cabinet Office, its coincident index of business conditions for February increased 0.6 point from a month earlier to 95.8 against the 2015 base of 100.

The Cabinet Office's expression "worsening" is the lowest evaluation of the five terms it uses to assess its key index, which reflects current economic conditions, with the assessment inferring the nation was entering a phase of recession.

The office said that the following month's index and those thereafter would better reflect the extent of the downside effects of the coronavirus pandemic on the world's third largest economy, as industrial output has slowed, business investment dropped, supply chains been disrupted and household expenditure tightened.

Japan's major domestic and international economic drivers have been hit by the global pandemic, with automakers and manufacturers shuttering operations domestically and abroad, airlines slashing routes and services amid vigorous travel bans at home and overseas, while travel agencies, retailers and restaurants have also seen business slump of late.

The number of foreign visitors to Japan has plummeted owing to concerns over the global coronavirus pandemic and travel bans, immigration authorities have said, while the statistics bureau said that household spending has dropped.

Sentiment in Japan's service sector, meanwhile, has declined significantly, dropping to its lowest level in almost nine years, the Cabinet Office said in a recent report, owing to mounting concerns about the spread of COVID-19.

While Japan's industrial output rose 0.4 percent in February from a month earlier, the government said that looking ahead output will likely slump as factories have shuttered operations amid disrupted supply chains and falling demand due to the pandemic.

Japan's Ministry of Economy, Trade and Industry said that looking ahead, the manufacturers it most recently surveyed predict industrial output to fall 5.3 percent in March. Enditem

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