Japan Cuts GDP Growth Forecast Amid Higher Oil Prices and Weaker Yen

The Japanese government has cut its economic growth forecast for the current fiscal year to 0.9% due to higher crude oil prices and a weaker yen against the US dollar.

According to the midyear report, the government expects the yen to trade at 161.4 against the US dollar, which is much weaker than the projected 155.2 in January.

The forecast also predicts that crude oil prices will rise to $92.5 per barrel, up from the previous estimate of $68.

Japan's economy is vulnerable to rises in crude oil prices due to its reliance on imports, and the weaker yen contributes to higher import costs.