The Japanese economy is recovering, the Cabinet Office said in a monthly economic report for April issued Friday, leaving its assessment unchanged for the second straight month, while upgrading its assessment for exports.
The government’s confirmation of the nation’s economic recovery in April stretches the current recovery period to 51 straight months, matching the bubble economy period from December 1986 to February 1991, which was the second-longest postwar economic expansion.
The longest expansion was the 57 consecutive months between November 1965 and July 1970.
The report also said, “Exports are increasing,” dropping the word “moderately” from its March assessment, reflecting firm demand in Asian economies and brisk consumption in the United States.
The April report, however, called for vigilance over high and volatile oil prices, especially when oil prices have hovered just below last year’s record high of $70.85 a barrel, given the nuclear standoff over Iran.
“The economic recovery supported by the domestic private demand is expected to continue, as resiliency in the corporate sector is extending into the household sector,” it said.
It also noted that attention should be given to the effect that developments of oil prices in particular have on both domestic and overseas economies.
According to the report, Japan’s personal spending is “increasing moderately” spurred by improvement in consumer sentiment and a gradual increase in wages.
Capital investment “is increasing,” while industrial production is “increasing moderately,” it said. The employment situation “is improving on a broader basis, though some severe aspects remain.”