The government of Japan has left its economy assessment unchanged in April, after an occasional downgrade in March, accused the US-China trade war that abide as a threat to economic and exports growth.
The Cabinet Office assists to coordinate government policy, in March has blamed the bruising trade war for the first demotion of its overall analysis in the three years.
It its latest review, the office reports that the economy retained in a gradual recovery but output and exports showed a signal of weakness.
The economic outlook’s risk of Japan could fuel calls for the government to hinder a nationwide sales tax hike set for October, analysts claims and forecast that the Bank of Japan will take some effective steps to reinforce economic growth.
Japan government is scheduled to raise the nationwide sales tax from 8 percent to 10 percent in October but also concerned that it might weaken consumer spending and harm growth.
In April, the view that exports remained weak was constant from March, said the office, but there is a chance of degrade if economic data highlights a further fall in exports.
Exports decrease for a fourth straight month in March as China-based shipments falls again, data showed, strengthen concerns that weak external demand may have hit the economy into contract in the first half.
The Cabinet Office left constant its analysis that consumers are spending is recovering but few economists worry that sentiments of consumer will take a bang if China-US trade dispute extends.
Manufacturing sector of Japan is exposed to trade war as it sends capital goods and electronic parts to China, where they produce finished products destined for the US.
Trade talks between the United States and Japan have posed another risk, said the office, though Economy Minister Toshimitsu Motegi has offered some hope for a good result “at an early stage”.
The United States President Donald Trump and Prime Minister Shinzo Abe has agreed in September 2018 to start a new trade talks in an arrangement, which protects Japenese automakers from further traffis while negotiations underway.