Monthly Economic ReportExecutive Summary( apr 2026 )

(Provisional translation)

(Assessment of the current state of the Japanese economy)

  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.

• Private consumption shows movements of picking up. However, attention should be given to weak movements of consumer sentiment recently.
• Business investment is picking up.
• Exports are almost flat.
• Industrial production is flat.
• Corporate profits, while affected by the U.S. trade policies, show movements of improvement.
• The employment situation shows movements of improvement.
• Consumer prices have been rising moderately recently.

  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 attention should be given to the effects caused from the situation in the Middle East. Also, attention should be given to the effects of fluctuations in the financial and capital markets and situations in U.S. trade policies.

(Policy stance)

  The Government will restore strength to the Japanese economy while tackling rising prices and safeguarding people's daily lives. To this end, the Government will promptly implement “Comprehensive Economic Measures to Build a “Strong Japanese Economy”” consisting of three pillars “Ensuring security in people’s daily lives: Measures to address rising prices”; “Strategic investments that enhance resilience against potential crises: Building a robust economy through growth-oriented investment”; and “Strengthening defense capability and diplomatic power”, the FY2025 supplementary budget, and the FY2026 budget.

  In response to the situation in the Middle East, in the near term, the Government has carried out emergency measures to curb dramatic fluctuations in the price of fuel oil. Through alternative procurement of crude oil and the release of oil stockpiles, the Government will work to ensure a stable supply of crude oil. The Government will also work to ensure a stable supply and the smooth distribution of critical materials.

  The Government and the Bank of Japan 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.