• Kyodo

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The government on Tuesday retained its view that the domestic economy remains on a recovery track but warns of downside risks from a recent surge in infections with the omicron variant of the coronavirus.

The Japanese economy “shows movements of picking up recently as the severe situation (of economic activities) due to the novel coronavirus is gradually easing,” the Cabinet Office said in its monthly assessment report for January. In December the outlook was upgraded for the first time in 17 months.

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