The government compiled its monthly economic report for December and maintained its underlying assessment that the economy is "recovering moderately."
While personal consumption is picking up due to increased travel, it is necessary to pay attention to trends in the infection status of the new coronavirus in China.
The government held a meeting of related ministers on the 21st and compiled the monthly economic report for December.
Among these,
▽ "Personal consumption" shows a recovery in consumption of services related to travel and accommodation, such as travel reservations for the year-end and New Year holidays expected to exceed last year's level, and an increase in the number of foreign tourists due to relaxation of border measures. In addition, the depreciation of the yen has led to a significant increase in consumption per person compared to the same period three years ago.
On the other hand,
▽ "Production" was downgraded, saying that the expansion of demand for smartphones and personal computers was slowing down worldwide and the production of electronic components was declining.
Based on these developments, we have maintained our basic assessment that the economy as a whole is picking up moderately.
As for the "future outlook," it is necessary to pay close attention to infection trends, as there are concerns that the Chinese economy will slow down due to rising prices and the resurgence of the new coronavirus infection in China.