Japan says its national economy is experiencing a moderate recovery

Published 19/02/2025, 11:28
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Investing.com -- The Japanese government on Wednesday reiterated its belief that the national economy is experiencing a moderate recovery.

However, it noted that U.S. trade policies, under the administration of President Donald Trump, could influence the economic outlook due to the uncertainty surrounding proposed tariffs.

The Cabinet Office, in its February monthly economic report, held its overall economic assessment steady for the seventh month in a row. This comes as consistent inflation, especially on everyday items, continues to impact consumer spending.

An official from the Cabinet Office noted that despite data indicating a continuing year-on-year wage increase, consumer spending growth is not keeping pace with income growth.

"The growth in consumption is suppressed when comparing with the growth in income," the official said during the report’s release.

The Japanese economy saw a faster-than-anticipated annualized growth rate of 2.8% in the fourth quarter of last year, between October and December.

This increase was driven by gains in business spending and an unexpected rise in consumption, according to the recent gross domestic product (GDP) data.

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