Bank of Japan’s Tankan survey is positive for economic recovery

Tokyo (AP) — A careful economic survey by the Bank of Japan shows that optimism is growing as the world’s third-largest economy is tackling the damage caused by the coronavirus pandemic.

The headline index for the quarterly Tankan survey of major manufacturers’ sentiments was plus 5 in March, well above the minus 10 marked in December, and more than expected to be plus 4.

The results of the study show that over the last three quarters, emotions have steadily recovered to levels before COVID-19 was launched in late 2019.

Tankan measures a company’s sentiment by subtracting the number of companies that say it’s bad from the companies that say it’s good.

The sentiment of the major non-manufacturing industry improved by 4 points to -1, which underlies the sector’s recovery much slower than the major manufacturers.

Mr. Naoya Okubo, Senior Economist of SuMi TRUST, Sumitomo Mitsui Trust Set Management, said that the recovery of the service sector is slow because “emergency situations” supported by the government are issued regularly and the latest will end in March. thinking.

Exports are driving the recovery and the food, travel and accommodation sectors are stagnant. However, the recent emergency has only been applied to some parts of Japan, so the overall impact will be milder than last year, Okubo said in a report this week.

“And in general, people have become accustomed to COVID-19 measures,” he said.

The coronavirus sent the sentiment of Japan Ltd. last year, which plunged to the level last seen when the economy was hit by the financial crisis more than a decade ago.

Although trade and some economic activity are recovering, revenues from tourism, a major driver of growth in recent years, are still constrained by pandemic-related restrictions.

About 9,100 people have died of COVID-19 in Japan. Vaccine deployment has barely begun and less than 1% of the population is vaccinated.

Recently, the number of incidents has increased in the “fourth wave” Concerns about the Tokyo Olympics are risingScheduled to open in July, tens of thousands of people, including athletes, businesses, government officials and the media, are coming from abroad.


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