Japan keeps view economy recovering, flags virus as big risk

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Japan keeps view economy recovering, flags virus as big risk
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Japan's government kept its view that the economy is recovering moderately ...

TOKYO - Japan’s government kept its view that the economy is recovering moderately in a monthly report in February as the labor market remained solid, but it warned about risks to the outlook from the coronavirus epidemic.

The new assessment came even after Japan’s economy shrank at the fastest pace in almost six years in October-December last year as a sales tax hike hit consumer and business spending. A Cabinet Office official said: “The virus outbreak is the biggest risk to the economy. We need to pay a close attention to its adverse impacts to the economy.”

The number of foreign visitors to Japan fell for the fourth straight month in January as the impact of a South Korean boycott continued to weigh. Sharper falls are expected ahead as the virus keeps away Chinese tourists and dampens global air travel.

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