Japan Cuts Economic Growth Forecast Amid High Oil Prices and Weaker Yen

The Japanese government has lowered its economic growth forecast for the current fiscal year to 0.9% from an earlier estimate of 1.3%, citing higher crude oil prices and a weaker yen.

According to Kyodo News, the Cabinet Office's revised projection was announced in the government's midyear economic outlook released on Thursday.

The report noted that Japan remains vulnerable to higher crude oil prices, while a weaker yen also increases import costs.

The government expects the economy to grow 1.1% in fiscal year 2027, beginning next April, supported by Prime Minister Sanae Takaichi's plans to boost investment in crisis management and strategic growth sectors.