Japan downgrades global economy assessment amid U.S. trade policy uncertainty

Published 22/05/2025, 10:32
Japan downgrades global economy assessment amid U.S. trade policy uncertainty

Investing.com -- The Japanese government revised its outlook on the global economy due to the uncertainty surrounding U.S. trade policy. This move signals growing concern over the widespread implications of tariffs introduced by President Donald Trump.

In its May monthly economic report, the government also adjusted its assessment of the U.S. economy for the first time in almost three years, stating that its expansion is slowing down.

The report stated, "A pick-up in the global economy is moderating with growth stalling in some regions amid uncertainty over U.S. trade policy." This statement contrasts with the government’s April report, which noted an increase in global economic growth.

The government’s evaluation of Japan’s economy remained unchanged, with the report noting it is "recovering moderately, while uncertainty exists over U.S. trade policy."

The report indicated that while an increase in jobs and household income will support a moderate recovery in Japan’s economy, the potential negative impacts from U.S. tariffs are growing.

The report also mentioned the potential negative effects of continued price increases on household sentiment and consumption, along with the repercussions from market fluctuations, as potential risks to Japan’s economy.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.