Japan cuts economic view as exports to Asia weaken

TOKYO – Japan cut its view on the overall economy for the first time in 11 months in January, as China’s COVID-19 infections and a slowdown in global demand for tech and semiconductors hurt exports, especially to Asia.

The government expects the economy, the world’s third largest, will pick up going forward but Japan needs to pay full attention to the impact from China’s spreading infections after it dropped stringent pandemic curbs, the report said.

The economic downgrade followed the Bank of Japan’s move last week when it slashed its economic growth projections for the next two fiscal years amid worries that slowing global demand will weigh on Japan’s export-reliant economy.