- CNTV English - CCTV News

Homepage > News > Biz >

Japan gov't maintains economic view, highlights downside risks

09-21-2011 11:20 BJT

TOKYO, Sept. 20 (Xinhua) -- The Japanese government on Tuesday maintained its assessment of the current state of the economy in September saying that conditions were improving but downside risks remained from overseas economies and pressures from the nation's domestic employment situation.

According to the Cabinet Office's monthly economic report, industrial production here was picking up due to key supply chains being restored following the March disasters and this had had a positive effect on Japan's fragile export sector.

But the government noted that downside risks to the economy were still present, including the leveling off of corporate profits and lingering concerns remaining about business conditions for corporations following the adverse circumstances presented by March's quake and ongoing nuclear disaster.

"Firms are cautious in their judgment on current business conditions, partly reflecting lingering severity due to the earthquake disaster," the office stated on Tuesday.

In addition, the government said that the employment situation in Japan was far from recovering. "The employment situation experiences a pause in improvement and remains severe," said the office.

Japan's economy remained in a mild deflationary phase, the office added, and volatile fluctuations in exchange rates, particularly the strength of the yen versus its major counterparts, continued to be of major concern to the government and was impacting the employment situation as well as the stock markets.

The government intended to combat the yen's recent surge and in its 2011 third supplementary budget for fiscal 2011, would address not just post-quake reconstruction efforts, but also the downside risks posed to Japan's economy by the yen's appreciation and what the office described as the "hollowing-out of industry".

According to the latest report, the government would continue to lean on the central bank, while closely monitoring monetary asset markets and expecting the Bank of Japan in unison with the government to "support the economy by appropriate and decisive monetary policy management."

Editor:Yang Jie |Source: Xinhua

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program