The government on Wednesday downgraded its economic outlook for the first time in 11 months, reflecting a fall in exports amid a recent surge in COVID-19 cases in China.
The Japanese economy is "picking up moderately, although some weaknesses have been seen recently," the Cabinet Office said in its overall assessment report for January, noting that it continues to be weighed down by a multitude of factors including price hikes and supply chain constraints.
The government had assessed in its December report that the economy was "picking up moderately."