Japan Cuts Growth Forecast Amid Oil Price Worries

The Japanese government has revised its economic growth forecast for the current fiscal year to 0.9 per cent, citing higher crude oil prices and a weaker yen as major concerns.

The revision was announced in the government's midyear economic outlook released on Thursday, July 30th, which noted that elevated oil prices resulting from the conflict in the Middle East pose risks to the economy.

The Cabinet Office's latest forecast expects the yen to trade at 161.4 per US dollar, up from its earlier projection of 155.2 made in January, and crude oil price assumption has been raised to USD 92.5 per barrel, up from USD 68 per barrel.