Welcome to Issues in Japan.
This time, I would like tentatively to share the Bank of Japan's Policy Board's analysis and observations.
Regarding the Current State of the Japanese Economy:
First, the overseas economy declined sharply in the April-June period of 2020 when the global spread of the new coronavirus progressed, but has since continued to recover, with some variations depending on the country or region.
By major countries and regions, the U.S. economy has continued to recover, especially in consumer spending, despite headwinds such as the re-spread of the Omicron mutant strain and supply constraints.
The European economy is also recovering overall, although public health measures have been temporarily re-enforced in some countries in response to an increase in the number of new infections.
The Chinese economy is recovering on an underlying basis, but the pace of growth is slowing due to weakening real estate and infrastructure investment as a result of stricter regulations and public health measures in some areas due to the spread of infectious diseases.
Emerging and resource-rich economies outside of China have been picking up, although the number of new infections has recently increased.
