TOKYO, Jan. 30 (Xinhua) -- Japan's Ministry of Finance on Thursday maintained its economic assessment, stating that the economy is "gradually recovering despite some weaknesses."

The judgment has remained unchanged since July 2022 and is based on a quarterly review of economic conditions across 11 regions.

By category, private consumption showed a moderate recovery despite the impact of rising prices. While consumers displayed a frugal mindset in daily life, demand for year-end and New Year events was strong, indicating selective spending habits, according to the ministry.

Industrial production remained mixed. Demand for AI-related semiconductors continued to be strong, but weaknesses were seen in electronic components for smartphones, leading to a slower pace of recovery.

Regarding the employment situation, conditions were improving gradually, but labor shortages became more pronounced, the ministry noted. In response to intensifying competition for workers, more companies are making efforts to raise wages.

On a regional level, the economic assessment for Hokkaido was upgraded, while the outlook for the other 10 regions remained unchanged.

Looking ahead, the ministry expects a continued moderate recovery supported by improvements in employment and income conditions. However, it also emphasized the need to closely monitor risks such as a slowdown in overseas economies and the impact of U.S. policy developments. Enditem

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