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Japan’s government yesterday maintained a cautious outlook for the economy in part as policymakers kept a wary eye on US President Donald Trump’s policies and their potential impact on global growth.
The government also said fluctuations in financial markets are among other factors to watch, and retained its view on the economy recovering moderately in January underpinned by steady wage gains and a solid corporate sector.
“Executive orders of various policies such as an immigration policy and energy policy, which would have an impact on the economies of both within and outside of the US, are being made in the US,” said an official at the Cabinet Office.
Trump’s threats of tariffs against key trading partners have stoked uncertainty for investors and policymakers, and have buffeted global markets since before and after his sweeping November 5 US election. Most Japanese firms operating in the United States are bracing for the fallout of Trump’s polices, a survey released last week showed.
The Cabinet Office report said Japan’s investment in the US has been increasing, ranking as the top for five straight years since 2019. Japanese companies are also contributing to job creation in the US, taking the top spot in the manufacturing sector, it added.
In the January report, the government maintained its view on most of the key economic areas. Private consumption, which accounts for more than half of the Japanese economy, was “picking up” and corporate profits were “recovering overall.” — Reuters.
Online Reporter