Japan has lowered its economic growth forecast for the current fiscal year, reflecting expectations that higher oil prices driven by tensions in the Middle East will weigh on domestic demand and add urgency to Prime Minister Sanae Takaichi¡¯s efforts to address rising costs of living.
The government has cut its projection for real growth in fiscal 2026 to 0.9% from the January forecast of 1.3%, the Cabinet Office said Thursday. It said higher crude prices are expected to weigh on the economy, although the drag should be partly offset by stronger wage growth and policy support.
Japan will release gross domestic product data for the April to June quarter on Aug. 17.
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