Japan Govt: Economy has been picking up but remains in difficult situation

Japan’s economy has been picking up but lacks the drive of domestic demand, the government says in it’s monthly report.

“Although the economy has been picking up, it is short of autonomous factors and remains in a difficult situation such as having a high unemployment rate.”

The report strikes a bleaker tone than the BOJ, which upgraded its view on the economy earlier in the week.

Keisuke Tsumura, parliamentary secretary of the Cabinet office said “The current economic improvement is led by exports and government stimulus, but domestic private consumption, which we define as an autonomous component, remains weak” adding “uncertainty is strong about how personal consumption will fare this month and later because the employment and income situations are severe.”