Japan revises economic assessment amid growing concerns over US tariffs

As Japan Today reports, the government changed the wording of its overall assessment of Japan's economy on Friday for the first time in eight months. Authorities said higher US tariffs imposed by President Donald Trump are worsening the country's GDP growth prospects.

In its monthly economic report for April, the Cabinet Office also expressed caution about the dynamics of consumer spending. Officials warned of a likely slowdown in the indicator amid a sharp rise in prices and the possible pressure of these factors on the economy in general.

Over the past few years, companies in Japan's private sector have increased the pace of employee wage increases. However, the disposable income of the population does not show signs of significant growth against the background of persistent inflation. As the publication notes, the country's households are increasing control over their spending as food prices rise. At the same time, consumer activity accounts for more than half of Japan's gross domestic product.

In general, the agency continues to assess the recovery of the Japanese economy as “moderate.” However, officials emphasize the pronounced pressure of uncertainty associated with US trade policy.