Skip to main content

Advertisement

Advertisement

Business

Japan's households, firms keep saving on prolonged impact of COVID-19 pandemic

Japan's households, firms keep saving on prolonged impact of COVID-19 pandemic

A Japan yen note is seen in this illustration photo. (File photo: REUTERS/Thomas White)

TOKYO: Japan's currency in circulation and bank deposits hit a record high for the fourth straight month in June, data showed on Friday (Jul 9), as households and companies continued to pile up savings on uncertainty over the economic fallout from the COVID-19 pandemic.

The data highlights how Japan is lagging other major economies in emerging from the pandemic's blow, with the government's declaration of fresh state of emergency curbs in Tokyo expected to hurt already weak consumption.

Japan's M3 money stock - or currency in circulation and deposits at financial institutions - rose 5.2 per cent in June from a year earlier to a record ¥1.52 quadrillion (US$13.84 trillion), Bank of Japan data showed.

The increase followed a 6.8 per cent gain in May and was the slowest pace since May last year, the data showed.

The slowdown was largely due to the base effect of sharp rises last year, when the initial hit from the pandemic forced companies to hoard cash.

Bank deposits were up 9.3 per cent in June from a year earlier, marking the slowest pace of increase since April last year, though the total balance - at ¥863.5 trillion - was the second highest on record, the data showed.

Source: Reuters/dv

Advertisement

Also worth reading

Advertisement