Japan Sticks with Gradual Economic Recovery Outlook Amid Lingering Iran War Costs
The Japanese government has maintained its outlook for a gradual economic recovery in the near term but warned about rising costs of living amid the lingering Iran war and weak yen.
In its September report, the Cabinet Office stated that the economy is 'recovering at a moderate pace' but noted the impact of global events, including the Middle East situation, needs close attention. The government also highlighted the need to monitor fluctuations in financial markets.
The official assessment of industrial production was revised up for the first time in over two years, backed by the global artificial intelligence boom and the auto sector's recovery from US tariffs imposed last year. However, public investment was downgraded due to a decline in public works spending.