The Japanese government has upgraded its outlook for the struggling economy, signaling that the country may be on the verge of escaping its prolonged economic lull, according to Reuters. On Monday, the Cabinet Office of Japan released its monthly report that showed increased expectations for both exports and industrial production as emerging markets in the region rebound from a slight slowdown at the end of 2010. The upgrade comes on the heels of the Bank of Japan’s own boost to the economic outlook.
Economics minister Kaoru Yosano said, “Our assessment is that the economy is showing signs of emerging from a lull, but domestic consumption is a little weak.” The official report said the economy is “showing signs of picking up and emerging from a lull,” although gross domestic product would still need to see an expansion in real and nominal terms, according to Yosano, before a true return to growth can be confirmed. Despite the positive outlook, the report downgraded the forecast for personal consumption on flat spending and reduced bonus payments.