Japan downgrades global economy assessment amid U.S. trade policy uncertainty
Investing.com -- The Japanese government revised its outlook on the global economy due to the uncertainty surrounding U.S. trade policy. This move signals growing concern over the widespread implications of tariffs introduced by President Donald Trump.
In its May monthly economic report, the government also adjusted its assessment of the U.S. economy for the first time in almost three years, stating that its expansion is slowing down.
The report stated, "A pick-up in the global economy is moderating with growth stalling in some regions amid uncertainty over U.S. trade policy." This statement contrasts with the government’s April report, which noted an increase in global economic growth.
The government’s evaluation of Japan’s economy remained unchanged, with the report noting it is "recovering moderately, while uncertainty exists over U.S. trade policy."
The report indicated that while an increase in jobs and household income will support a moderate recovery in Japan’s economy, the potential negative impacts from U.S. tariffs are growing.
The report also mentioned the potential negative effects of continued price increases on household sentiment and consumption, along with the repercussions from market fluctuations, as potential risks to Japan’s economy.
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