Japan Confirms Steady Economic Recovery Despite Trade Uncertainty

(MENAFN) On Wednesday, Japan’s government reaffirmed its assessment that the domestic economy is experiencing a moderate recovery, while continuing to highlight persistent uncertainty tied to U.S. trade policies.

This marks the third straight month since April that the government has maintained this cautiously optimistic stance.

Although concerns remain over the potential fallout from U.S. tariff measures, the latest report points to encouraging signs such as robust corporate capital investment alongside gains in employment and income conditions.

Notably, the wording on corporate earnings was updated from “improving” to “improving, but attention should be paid to the impact of trade issues,” signaling a heightened awareness that data from the April-June quarter onward may reveal more pronounced effects from U.S. tariffs, according to media.

Other major indicators, including personal consumption and business sentiment, showed no change from the previous month’s evaluation.

On the global front, the report reiterated a slowdown in economic recovery momentum and flagged stagnation in some regions.

The document also emphasized growing vigilance among Japanese policymakers as they closely watch international trade developments, especially those influenced by evolving U.S. economic policies.

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