The government on Wednesday downgraded its overall assessment of regional economies for the first time in 18 months, as a global chip shortage and supply chain disruptions weigh on the auto industry.
The pace of recovery in regional economies is "moderating" partly due to supply constraints, the Finance Ministry said in a report that is part of its quarterly assessment covering the nation's 11 regions. The assessment changed from the previous view, in which it said the economies were "recovering although weakness is seen in some sectors."
The downward revision was the first since April last year, when the economy was experiencing a serious slump caused by the initial impact of the COVID-19 pandemic.