Japan Cuts Economic Growth Projection Amid Rising Oil Prices and Weakened Yen
The Japanese government has revised its economic growth projection for the 2026 fiscal year down to 0.9 percent, from the previous estimate of 1.3 percent.
The downward revision is due to rising crude oil prices and a weakening yen against the US dollar. The country's reliance on energy and raw material imports makes it vulnerable to global price fluctuations.
Crude oil prices are expected to rise to $92.5 per barrel, up from the previous estimate of $68 per barrel. Meanwhile, the yen is projected to weaken further, reaching 161.4 per US dollar by the end of the year.
The government's revised projection comes as Prime Minister Sanae Takaichi aims to increase investment in crisis management and strategic growth sectors to boost household consumption and corporate capital investment.