Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Japan sticks to economic assessment in June report

Published 06/24/2021, 04:37 AM
Updated 06/24/2021, 04:41 AM
© Reuters. FILE PHOTO: Pedestrians wearing protective masks amid the coronavirus disease (COVID-19) outbreak, make their way in Tokyo, Japan, February 2, 2021. REUTERS/Kim Kyung-Hoon/File Photo

© Reuters. FILE PHOTO: Pedestrians wearing protective masks amid the coronavirus disease (COVID-19) outbreak, make their way in Tokyo, Japan, February 2, 2021. REUTERS/Kim Kyung-Hoon/File Photo

By Daniel Leussink

TOKYO (Reuters) - With about a month to go until Tokyo hosts the Olympic Games, Japan kept its economic assessment for June largely intact, sticking to its view that the economy remained impacted adversely by the coronavirus pandemic.

In a monthly assessment approved by the cabinet on Thursday, the government said full attention should be given to the way infection trends are affecting the domestic and foreign economies.

"The economy shows increased weakness in some parts, though it continued picking up amid severe conditions due to the coronavirus," the government said in the report to describe economic conditions in June.

On key economic elements, authorities stuck to their view of major components - such as exports, output and private consumption -struggled as the health crisis has prompted people to cut back on overall spending.

"Car exports are not doing very well, but those of information-related materials and capital goods used for capital investment overseas are strong," a government official told reporters before the cabinet approved the report.

The official said that output of transport machinery was expected to slow down as manufacturers struggle with the impact of a global chip shortage.

Authorities raised their assessment of housing investment, saying it was firming as a trend, against previously describing it as being flat, due to an improvement in the construction of single-family homes.

© Reuters. FILE PHOTO: Pedestrians wearing protective masks amid the coronavirus disease (COVID-19) outbreak, make their way in Tokyo, Japan, February 2, 2021. REUTERS/Kim Kyung-Hoon/File Photo

Japan's economy likely grew at just 0.5% on an annualised basis this quarter, a Reuters poll showed this month, a much slower pace than a majority of economists expected months ago, as it struggles with the pandemic's impact.

The government will release a preliminary estimate for second-quarter gross domestic product on Aug. 16.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.