Ministerial Council on the Monthly Economic Report and Other Relative Issues

On January 22, 2026, Prime Minister Takaichi attended a meeting of the Ministerial Council on the Monthly Economic Report and other relative issues at the Prime Minister’s Office.

Regarding the assessment of the current state of the Japanese economy, the January Monthly Economic Report states, “The Japanese economy is recovering at a moderate pace, while the effects caused from the U.S. trade policies are seen mainly in the automotive industry.” Furthermore, concerning short-term prospects, the Report states that “the improvement in the employment and income situation and the effects of the policies are expected to support a moderate recovery. However, attention should be given to downside risks to the Japanese economy such as future price trends and developments regarding U.S. trade policies.” The Report further states “continued attention should be given to the effects of fluctuations in the financial and capital markets, as well.”