Japan Govt Keeps Economic View Unchanged in May

May 23, 2018

Tokyo- The Japanese government kept intact its overall assessment of the domestic economy for the fourth straight month in May, according to a monthly economic report released on Wednesday.

"The Japanese economy is recovering at a moderate pace," the government said in the report submitted to a meeting of related ministers.

Government data last week showed the country's seasonally adjusted gross domestic product for January-March shrank 0.2 pct from the previous quarter in price-adjusted real terms, or 0.6 pct on an annualized basis.

The government, however, maintained its overall assessment, noting that the GDP decrease came after eight consecutive quarters of growth.

In the GDP data, personal consumption edged down. The drop was mainly due to "temporary factors" such as a rise in vegetable prices brought on by bad weather, according to a Cabinet Office official.

In the May report, the government's assessment was left unchanged for all sectors of the economy. Private consumption and exports are "picking up" and business investment is "increasingly moderately," the report said.

Looking ahead, the report said the economic recovery is expected to continue, chiefly thanks to the improving income situation.

The official said that nominal employee compensation in January-March rose 3.5 pct year on year based on a Cabinet Office estimate, marking the largest increase in 21 years.

"The income situation is very favorable," the official added. Jiji Press