Japan Govt Keeps Basic Economic View Unchanged in June

Tokyo, June 30 (Jiji Press)–The Japanese government Tuesday kept its basic economic assessment unchanged in June while staying on guard against the fallout from the Middle East conflict. “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 government said in its monthly economic report for June, drawn up by the Cabinet Office. A Cabinet Office official noted that the prices of crude oil and naphtha are “nearing levels seen before tensions in the Middle East escalated,” following the U.S.-Iran agreement earlier this month to end their conflict. At the same time, however, the official said the earlier surge in oil prices prior to the agreement is starting to push up import prices and domestic producer prices. The government said that it will continue to respond to the Middle East situation “in a flexible manner,” using the reserve fund included in its fiscal 2026 supplementary budget enacted June 5. Elsewhere in the report, the government revised up its assessment on exports for the first time in 16 months, saying that they “have been showing movements of picking up recently.” Last month’s report described the sector’s movements as almost flat. The government also upgraded its view on business failures for the first time in 17 months, saying that they are almost flat, compared with its previous assessment that recognized an increase. With signs of bottoming out seen for consumer sentiment, the government maintained its view that private consumption “shows movements of picking up.” END [Copyright The Jiji Press, Ltd.]