The Ministry of Finance of Japan released its October economic situation report on the 7th, and the overall judgment of the national economy continued to be “slow recovery”. Among the 11 regions in the country, the economic conditions of five regions, including Kanto and Hokuriku, were raised, while the rest of the regions remained unchanged. Although rising prices have put downward pressure on consumption, the increase in demand for disaster emergency reserves has driven consumption to remain stable.
The report was presented at the National Finance Bureau Directors’ Meeting held on the 7th. The overall economic assessment has remained stable for five consecutive quarters. Looking ahead, the Ministry of Finance of Japan pointed out that high interest rates in Europe and the United States and the weakness of the Chinese real estate market may have a negative impact on the overseas economy, posing a potential risk to the Japanese economy.
In terms of regional performance, economic estimates for Kanto, Hokuriku, Tokai, Shikoku, and Okinawa were revised upward. Although the Hokuriku region was affected by the Noto Peninsula earthquake, the economy gradually recovered due to post-disaster recovery demand and the positive impact of the Hokuriku Shinkansen Tsuruga extension.
Consumer activity improved in Kanto and Shikoku. Supermarkets in the Kanto region reported strong sales of bottled drinks and ice cream due to the hot summer. Supermarkets in the Shikoku region said that the increased demand for stocking up on food and daily necessities due to the earthquake and typhoon drove sales growth.
Production activities in the Tokai region also showed a “mild recovery” trend. Transport machinery companies in the region were forced to suspend production due to a typhoon in late August, but have resumed normal operations since September and maintained a near-full-load production status. In addition, the impact on the automotive industry due to certification violations has also been eliminated. In Okinawa, the tourism industry is gradually picking up, showing signs of a slow recovery.
