Japanese Economy Rebounds Despite Overseas Interest Rate Risks: Monthly Report for June.

The Japanese economy is showing signs of improvement, according to the government’s monthly economic report for June. Despite potential risks from elevated overseas interest rates on global growth, the report notes that industrial production is improving and the negative impact of a data-rigging scandal in the auto sector is decreasing.

The Japanese economy contracted in the January-March period but is expected to rebound in the current quarter to June, with rising prices of everyday goods affecting consumer spending. Private consumption and exports are showing signs of pausing while business investments are increasing, indicating a mixed outlook for domestic demand.

The government is closely monitoring the yen’s weakness against the U.S. dollar, which could lead to increased import costs of energy and raw materials, affecting inflation. Despite concerns about high interest rates in the United States and Europe, Japan has raised its outlook on the global economy for the first time since May 2023, stating that overseas economies are showing signs of improvement.