The Bank of Japan raised its economic judgment in seven of the nine regions nationwide in the “Regional Economic Report” released on the 11th. Although the manufacturing industry is seeing the impact of a shortage of parts supply, the impact of the new coronavirus on personal consumption, especially in food and beverages and lodging, is said to have eased.
The Bank of Japan held a branch managers’ meeting once every three months and published a “Regional Economic Report” summarizing the current state of the economy nationwide.
According to this, out of the nine regions nationwide, seven regions, Hokkaido, Tohoku, Hokuriku, Kinki, Chugoku, Shikoku, and Kyushu / Okinawa, have raised their economic judgments from the previous report.
On the other hand, economic judgments have been left unchanged for the two regions of Kanto Koshinetsu and Tokai.
The reason for raising the judgment in the seven regions is that while the supply of parts continues to be in short supply in the manufacturing industry, the influence of the new corona, mainly on food and drink and accommodation, has eased since the priority measures such as prevention of spread were lifted. Especially in “personal consumption”, we raised our judgment in all nine regions.
Bank of Japan
▽ In addition to soaring raw material prices following the Russian military invasion
▽ The uncertainty of the Japanese economy is extremely high because the infection of the new corona is spreading again in Japan.
We will carefully monitor future trends.
Bank of Japan Osaka Branch Manager “Watching for re-expansion of infection”
On top of that, regarding the future, “In the Kansai region, the infection of the new corona has spread again recently, and it is necessary to pay attention to the impact on consumption. In addition, raw material prices are rising further due to the situation in Ukraine. , Corporate profits may be pushed down, and if wage increases cannot keep up with rising prices, consumption may be pushed down, so we need to keep a close eye on future trends. “