more to come
Japan's government cut growth forecast for the current fiscal year ending in March 2025 to a 0.9% expansion from a 1.3% gain projected in January
- expects the economy to grow 1.2% in fiscal 2025
- consumption took a hit from rising import costs due to a weak yen
- projected growth to accelerate next year on robust capital expenditure and consumption
- retaining its view the economy will sustain a domestic demand-led recovery
- Some members of the government's top economic council, however, voiced concern over recent weakness in consumption and the pain the yen's falls were inflicting on households. "We can't overlook the impact a weak yen and rising prices are having on households' purchasing power," the private-sector members of the council told Friday's meeting that discussed the new growth forecasts.
- "The government and the Bank of Japan must guide policy with a close eye on recent yen declines"
