Japan Calls for Close Watch on Economic Impact of Mideast Conflict

Tokyo, March 27 (Jiji Press)–The Japanese government on Friday highlighted the need to closely monitor the economic impact of the conflict in the Middle East. “The Japanese economy is recovering at a moderate pace, while attention should be given to the effects caused from the situation in the Middle East,” the Cabinet Office said in a monthly economic report for March. The report stressed the need to watch closely for any moves to cut production in the petrochemical industry, including for ethylene, a key raw material for plastic products. The Cabinet Office said that a 10 pct increase in oil prices would drive up the country’s consumer prices by about 0.3 pct over the course of a year. Even if Japan manages to secure sufficient amounts of oil and liquefied natural gas, a 50-80 pct increase in import prices would result in additional costs of about 9 trillion to 15 trillion yen, the office said. The government maintained its assessment on private consumption, saying that it “shows movements of picking up.” It also kept its assessment unchanged on capital investments, saying that these are “picking up moderately.” “Consumer prices have been rising moderately recently,” the government said, citing a slowdown in rice price increases. END [Copyright The Jiji Press, Ltd.]