Japan maintains its economic outlook, bleaker on view due to Covid

In August, Japan’s government maintained its economic outlook for the fourth month in a row, but it was slightly bleaker than in July, as a rise in Covid-19 infections weighed on consumer spending.

“The economy continues to improve, but there are still weaknesses as the coronavirus pandemic continues to wreak havoc,” the government said in its monthly economic report released on Thursday.

In terms of the future, the August study cautioned that “heightening downside risk induced by the pandemic” must be taken into account. This contrasts with the previous month’s view, which stated that the government must be wary of the pandemic’s “effect.”

The government’s assessment of most aspects of the economy remained unchanged, including consumer spending, which it classified as “poor” due to the services sector.