Japan economy may tie 73-month postwar growth record in June
TOKYO (Kyodo) -- The Japanese government is likely to retain its view that the economy is recovering moderately in its monthly assessment for June, a source close to the matter said Tuesday, leaving the economy on track to tie the postwar record of 73 consecutive months of expansion since June 2020.
The government is set to keep the view, as it sees state subsidies for gasoline as supporting personal spending despite price hikes of petroleum products amid the Middle East conflict, while business investments have been firm due to demand linked to artificial intelligence technology, the source said.
The provisional assessment for June suggests the expansion has tied the postwar record set between February 2002 and February 2008. But the final determination of the length of the economic expansion will be made retrospectively by a Cabinet Office panel of economists and other experts.
The agreement between the United States and Iran to end the monthslong war is also a positive factor for the Japanese economy, boosting the chances that the expansion will surpass the postwar record in July.
The government will release its economic assessment for June on Monday, based on economic data collected through April.
The Japanese economy has expanded since hitting bottom in May 2020 due to the novel coronavirus pandemic.
By category, personal consumption has been supported by robust wage hikes by both large and small companies, while corporate investment has been strong on the back of the need to push digitalization and labor-saving measures.
Exports, including autos, have also recovered despite U.S. President Donald Trump's higher tariffs that were implemented last year.
Article source: https://mainichi.jp/english/articles/20260623/p2g/00m/0bu/034000c
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