BANK OF JAPAN EXPECTS MODEST ECONOMIC RECOVERY
The head of the Japanese Central Bank, Haruhiko Kuroda, said that the country's economy will grow thanks to a gradual recovery in global demand. However, this economic growth is likely to be modest. The coronavirus pandemic continues to have a negative impact on the Japanese economy. Since the fall of last year, the increase in the number of diseases in the country has accelerated, which puts pressure on the consumption of services. Haruhiko Kuroda noted that in two of the nine regions of the country, the situation remains very difficult. The quarterly report of the Japanese Central Bank shows a growing discrepancy between the state of exporting companies and companies engaged in retail trade.
The former benefit from the rapid growth of demand for Japanese products from foreign customers. At the same time, the retail chain is still under pressure from falling consumer demand. The report notes an increase in sales of Japanese cars against the background of the recovery of the car market in the United States. Smartphone manufacturers are also showing good dynamics. The Japanese economy managed to recover from the downturn due to the growth of export orders. However, weak vaccination rates with an increasing number of diseases are clouding the economic outlook.
USDJPY is 108.83 and trend is bearish.