Japan maintains a cautious economic outlook and warns of the risks posed by US trade policies.

The economic report released by the Japanese government on Thursday basically maintained a cautious optimistic stance on the economy, while warning of downward risks from US trade policies. The Cabinet Office reiterated in its monthly economic assessment report for January that the Japanese economy, as the world's fourth largest, is experiencing a mild recovery, but emphasized the impact that US policies may have on the Japanese automotive industry. The report also stressed the need to closely monitor market trends. The report maintained its outlook for private consumption, which accounts for over half of the economy, and noted its fifth consecutive month of "recovery". The only significant change in the economic assessment was the trade balance, which was revised from a "deficit" to "roughly balanced". Regarding prices, the report pointed out that the rate of increase in food prices has slowed down, and the government will closely monitor whether the signs of a slowdown in price increases will continue. However, since the significant depreciation of the yen since October last year, there are more doubts about whether the cost-driven price pressures will ease as smoothly as expected by the central bank.