Reference News Network July 8 report - According to Kyodo News, on Monday, the Japanese government downgraded its assessment of Japan's economic situation in May to "deteriorating." This is the first time in about five years that this rating has been used, signaling that Japan's economy may have entered a recession.
The Ministry of Economy, Trade and Industry's assessment is the most pessimistic level in the five-tier assessment system. Part of the reason for this is the decline in exports to the United States. The last time the rating "deteriorating" was used was in July 2020 when the COVID-19 pandemic reached its peak.
The ministry said that the coincident index reflecting Japan's economic conditions in May fell slightly by 0.1 points to 115.9 (with 2020 as 100), marking the first decline in two months. For the previous 12 consecutive months up to April this year, the wording used had been "stabilizing."
According to the sub-item data, the export volume index fell 0.2 points to 102.0. However, Japanese government officials stated that it is still difficult to determine whether this decline was influenced by the tariffs imposed by former U.S. President Trump.
The leading index, which forecasts the economic outlook for the coming months, rose 1.1 points to 105.3, marking the first recovery in four months. (Translated by Wu Mei)
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