In January, Japan's government cut its monthly economic assessment for the first time in 11 months, as trade weakened due to a global economic slowdown.
The cabinet office said in its latest report Wednesday that parts of the economy are showing weakness, while overall it is picking up moderately. It downgraded its view on exports, imports and bankruptcies.
Japan is bracing for the effects of a global economic slowdown due to aggressive monetary policy tightening, and the fallout from China's abrupt end to its zero-Covid policy.
In Japan's inflation is at the fastest pace in more than four decades, which has resulted in a rise in the number of bankruptcies as companies struggle to pass on costs to customers.
The latest government stimulus measures, worth 39 trillion yen $300 billion in fiscal spending, are expected to start easing the pain early this year. Analysts from Bloomberg believe that growth will slow down in the first quarter of this year.
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