Japan’s economy is expected to grow 1.2% in fiscal 2025, which starts next April, in price-adjusted real terms, unchanged from its previous November forecast, the government said Wednesday.
The government maintained its view that personal consumption will be solid thanks to stable inflation and the effects of its economic package and that exports will recover because of a moderate pickup in overseas economies.
The government expects personal consumption, which accounts for half of the country’s gross domestic product, to grow 1.3%, an increase of 0.1 percentage point from the previous estimate. It anticipates 2.0% inflation.
For fiscal 2024, the government lowered its economic growth outlook to 0.4% from 0.7%.
The reduction reflects slower-than-expected growth in exports amid lower vehicle production and China’s slowing growth, as well as weaker personnel consumption and capital spending.