Japan Weighs Economic Forecast Adjustment Amid U.S. Tariff Concerns
Japan may reduce its economic growth estimate for the fiscal year ending March 2026, citing likely impacts from U.S. tariffs. The present forecast of a 1.2% expansion could fall below 1%. Official projections will be finalized by July, considering U.S.-Japan trade discussions.
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- Japan
Japan's economic growth forecast for the fiscal year ending in March 2026 may be downgraded due to pressures from anticipated U.S. tariffs, according to insider government sources. The country initially projected a 1.2% expansion but might adjust it to less than 1%.
It is expected that Japan will finalize its economic forecasts by the end of July, following developments in trade negotiations with the U.S. Ryosei Akazawa, Japan's tariff negotiator, is set to visit the United States as early as June 26 to resume talks.
The government issues growth projections biannually, utilizing them for budget planning. On May 1, the Bank of Japan reduced the economic growth outlook for fiscal 2025 from 1.1% to 0.5%, reflecting the repercussions of the U.S. tariffs.
(With inputs from agencies.)
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