TOKYO, May 22 (Xinhua) -- The Japanese government on Thursday maintained its assessment of the economy in its monthly economic report, despite a contraction of gross domestic product (GDP) in the first three months of 2025.
In its monthly report for May, the Cabinet Office said the Japanese economy is "recovering at a moderate pace," while noting that "uncertainty arising from the U.S. trade policies and so on exists."
The report came after data showed the Japanese economy shrank an annualized real 0.7 percent in the January to March quarter, the first contraction in four quarters, weighed down by sluggish private consumption.
According to the report, private consumption, which accounts for more than half of the economy, "shows movements of picking up," although the rise in household living costs continues to weigh on consumer sentiment.
The government upgraded its assessment of imports for the first time in six months, stating they were "showing movements of picking up recently."
While increased imports contributed negatively to growth in the latest GDP data, strong demand for personal computers, smartphones and cables for automobile production were seen as signs of domestic economic recovery, the Cabinet Office said. ■
