Japan’s government downgraded its assessment of the economy in March for the first time in three years, blaming a bruising U.S.-China trade war for slumping exports and industrial output.
The monthly economic report for March was a downgrade from February, when the Cabinet Office simply said the economy is in gradual recovery.The March report gave a pessimistic outlook, saying this bout of weakness could continue for some time in the future. Exports fell for a third straight month in February and industrial output in January saw its sharpest decline in a year as tit-for-tat tariffs between Washington and Beijing slowed China’s economy and reduced demand for mobile phone parts and chip-making equipment from Japan.
Despite the damage from the trade war, Japan’s economy should continue to grow moderately because consumer spending and capital expenditure are holding up, a Cabinet Office official told reporters at a briefing.
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