The Cabinet Office of the Japanese government said in its monthly report published on Friday that the country's economy is " recovering at a moderate pace, although it remains pausing in part," following the recent report that showed an increase in Japan's annual inflation rate to 2.9%.
According to the report, the Japanese government expressed optimism about its economy recovering moderately, noting that its policies improved employment and income situation in the country. The report also underlined that the decline of other economies, such as the United States and some European countries, can have a negative effect on the Japanese economy.
The government also stated that it will work with the Bank of Japan (BoJ) to "conduct flexible policy management in response to economic and price developments" and expressed its expectation that the BoJ will be able to bring the inflation rate to the target 2% in a "sustainable and stable manner."
