Japan Cuts Growth Forecast amid Slowing Global Demand

The Japanese government trimmed its economic growth forecast for the current fiscal year ending in March 2024 to 1.3% on Thursday, from 1.5% in January, due to the impact of slowing global demand on exports.

The expectations come ahead of the Bank of Japan’s crucial policy meeting next week, where the board will reveal its quarterly forecasts and review the economy’s progress toward the long-term inflation target of 2%.

“Japan’s economy is recovering moderately,” Prime Minister Fumio Kishida said, citing positive indicators such as consistent wage increases and robust corporate spending appetite.

The government predicts that overall consumer inflation, which does not exclude any items, will reach 2.6% this fiscal year, which is higher than the 1.7% predicted in January and surpasses the Bank of Japan’s 2% target.

Also, the government forecasts 1.9% inflation in fiscal 2024.