Japan’s government maintains August economic assessment, downgrades view on exports

First downgrade in export assessment in three years

The government maintains that “the economy is recovering at a moderate pace” in August but it moved to downgrade its view on exports and imports. The statement read that the government expects the economy to continue recovering but needs to monitor the impact of trade issues on the global economy.ForexLive

They mention that they see recent pause in exports and imports recovery while also pointing to slowing trade with China as one the main reasons for the downgrade.

The acknowledgement here shows that there are potential headwinds faced by the Japanese economy and that doesn’t bode well for economic growth moving forward – particularly if the BOJ is looking to exit from its ultra-easing policies.