COVID-19 dims Japan’s economic outlook
Japan’s government stuck with its economic evaluation for four consecutive months in August. However, its outlook was slightly gloomy compared with the previous month after a resurgence in COVID-19 outbreaks that hit consumer expenditure.
The economic report on Thursday described the economy to continuously recover but some weaknesses emerged due to the dragging coronavirus pandemic. It also stressed the importance of paying attention to the pandemic’s increasing downside risk.
The government made no changes in its assessment on factors driving the economy, even describing consumer spending weak due to the services sector.
It slashed its projections on imports, a first in ten months, citing a slow household and overseas demand on goods.
However, its outlook on corporate profits was revised up as a result of strong earnings among manufacturers in the second quarter.