The economy remains on a recovery track amid increasing domestic demand, though risks including trade tensions warrant caution, the government has said.
In the December edition of its monthly economic report, the Cabinet Office maintained its headline assessment that the economy "is recovering at a moderate pace" and retained its evaluations of key elements such as private consumption, business investment and exports.
"Although a moderate pace of recovery is expected to continue, there are risk factors in foreign demand," Toshimitsu Motegi, the minister in charge of economic and fiscal policy, said at a news conference, citing the trade dispute between the United States and China among other developments abroad.