First downgrade in three years

Japan

In its latest monthly economic report, the Japanese government downgraded its view of the economy for the first time since 2016; citing recent weakness in exports and industrial production.

The Cabinet office states that the economy is in a gradual recovery but exports and output are showing signs of weakness. This will surely raise some eyebrows ahead of the proposed sales tax hike in October.

If the economy is already facing problems, can the Japanese government risk the possibility of pushing it towards another technical recession?