Trade
Japan Lowers This Year’s Growth Forecast as Tariffs Kick in
Inflation, as measured by the broad consumer price index, is forecast to reach 2.4% this fiscal year, up from the prior forecast of 2%.
Photographer: Soichiro Koriyama/BloombergJapan cut its growth forecast for the current fiscal year as US tariffs and persistent inflation weigh on the economy, complicating the policy course of the Bank of Japan and adding to pressure on embattled Prime Minister Shigeru Ishiba.
The government revised its real growth projection for fiscal year 2025 to 0.7%, down from the previous forecast of 1.2%, the Cabinet Office said Thursday. The downgrade partly reflects a darkening global economic outlook as a result of US President Donald Trump’s tariff policies, it said.