Monthly Economic ReportExecutive Summary( apr 2024 )

(Provisional translation)

(Assessment of the current state of the Japanese economy)

  The Japanese economy is recovering at a moderate pace, although it recently appears to be pausing.

• Private consumption appears to be pausing for picking up.
• Business investment shows movements of picking up.
• Exports appear to be pausing for picking up.
• Industrial production was on the way to picking up, but manufacturing activities have declined recently due to the effects of suspension of production and shipment by some automotive manufacturers.
• Corporate profits are improving as a whole. Firms' judgments on current business conditions are improving. Some manufacturers are affected by the suspension of production and shipment by some automotive manufacturers.judgments on current business conditions are improving. Some manufacturers are affected by the suspension of production and shipment by some automotive manufacturers.
• The employment situation shows movements of improvement.
• Consumer prices have been rising moderately.

  Concerning short-term prospects, the economy is expected to continue recovering at a moderate pace with the improving employment and income situation, supported by the effects of the policies. However, slowing down of overseas economies is downside risk of the Japanese economy, including the effects of global monetary tightening and the concern about the prospect of the Chinese economy. Also, full attention should be given to price increases, the situation in the Middle East and fluctuations in the financial and capital markets. In addition, full attention should be given to the economic impact of the 2024 Noto Peninsula Earthquake.

(Policy stance)

  The Government will accelerate the initiative of new capitalism to transform the economy from a cost-cutting economy that has been in place for 30 years to a growth-oriented economy driven by sustained wage increases and active investment.

  To this end, the Government will swiftly and steadily implement the “Comprehensive Economic Measures for Completely Overcoming Deflation: Toward New Stage of the Japanese Economy”, the FY2023 supplementary budget and the FY2024 budget.

  Moreover, based on the “Package to Support the Lives and Livelihoods of the Affected People”, reserve funds will be utilized to provide continuous support for the victims of the 2024 Noto Peninsula Earthquake, including the rebuilding of their lives and livelihoods, as well as for the reconstruction of the areas affected by this earthquake.

  The Government expects the Bank of Japan to achieve the price stability target of two percent in a sustainable and stable manner, while confirming the virtuous cycle between wages and prices, through conducting appropriate monetary policy management in light of economic activity, prices and financial conditions.

  The Government and the Bank will continue to work closely together to conduct flexible policy management in response to economic and price developments.

  Through these managements, the Government and the Bank will foster widespread recognition among the public that there is no going back to deflation, and leading to an end to deflation. Then, the government will mobilize all possible policy measures to transform the Japanese Economy into a new growth-oriented economy.