Japan cuts economic view as exports to Asia weaken.
TOKYO, Jan 25 (Reuters) - Japan cut its view on the overall economy for the first time in 11 months in January, as Chinas COVID-19 infections and a slowdown in global demand for tech and semiconductors hurt exports, especially to Asia.
The government expects the economy, the worlds third largest, will pick up going forward but Japan needs to pay full attention to the impact from Chinas spreading infections after it dropped stringent pandemic curbs, the report said.
The economic downgrade followed the Bank of Japans move last week when it slashed its economic growth projections for the next two fiscal years amid worries that slowing global demand will weigh on Japans export-reliant economy.
The authorities slashed its assessment on exports for the first time since November 2011, while it also cut its view on imports for the first time in three months. The January report said both exports and imports are "weakening recently" compared with its previous view of "almost flat" last month.
"Chinas coronavirus rebound could affect Japans exports and production and such a possibility has become clearer than last month," said an official at the Cabinet Office.
The government also remained cautious over downside risks from the global economic slowdown amid monetary tightening, inflation and financial market fluctuations.
Meanwhile, the Cabinet Office maintained its assessment of Japans domestic demand, saying private consumption was "picking up moderately" in the latest report.
Japan cut its view on the overall economy for the first time in 11 months in January, as Chinas COVID-19 infections and a slowdown in global demand for tech and semiconductors hurt exports, especially to Asia.
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