Monthly Economic ReportExecutive Summary( apr 2025 )

(Provisional translation)

(Assessment of the current state of the Japanese economy)

  The Japanese economy is recovering at a moderate pace, while the uncertainty arising from the U.S. trade policies and so on exists.

• Private consumption shows movements of picking up with the movement of improvement in the employment and income situation continuing, although consumer sentiment is in a weak tone.
• Business investment shows movements of picking up.
• Exports have been showing movements of picking up recently.
• Industrial production is flat.
• Corporate profits are improving.
  Firms' judgments on current business conditions have been almost flat recently.
• The employment situation shows movements of improvement.
• Consumer prices have been rising.

  Concerning short-term prospects, the improvement in the employment and income situation and the effects of the policies are expected to support a moderate recovery, while downturn risks of the Japanese economy due to the impact of the U.S. trade policies are increasing. In addition, the effects of continued price increases on private consumption through a downturn in consumer sentiment are also downside risks to the Japanese economy. Also, further attention should be given to the effects of fluctuations in the financial and capital markets.

(Policy stance)

  The Government will take all possible measures to response U.S. tariff measures, and will continue to ensure the provision of all essential support for economic and fiscal management. To ensure the overcoming deflation, the Government will make effort to implement a “Growth-Oriented Economy Driven by Wage Increases and Investments”, standing on the principle of “Economy is the foundation of public finance”.

  To this end, the Government will promptly implement the “Comprehensive Economic Measures to Foster the Safety and Security of Citizens and Sustained Growth－Increasing Current and Future Wages and Incomes for All Generations－”, the FY2024 supplementary budget, and the FY2025 budget. In order to take comprehensive action responding to U.S. tariff measures, the Government have established the "Comprehensive Response Headquarters for U.S. Tariff Measures" and will proceed with all necessary measures.

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

  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, by conducting appropriate monetary policy management in light of economic activity, prices and financial conditions.