Archive · 30 Jul 2026
Japan Lowers FY27 Growth Forecast to 0.9% Amid Rising Energy Costs
Japan’s government said the country’s economy will grow a little less this year than they first thought.
They lowered the forecast to 0.9% because oil prices are higher and this makes it more expensive for people and companies.
Even though growth is slower, wages are still expected to rise, so people can still buy things.
The government also thinks it will start making a small budget surplus next year, which is good for the country’s finances.
Japan’s Cabinet Office cut FY27 GDP growth forecast to 0.9% from 1.3%.
Higher imported oil prices and Middle East tensions are the main reasons for the downgrade.
Private consumption growth is now expected to be 0.9% instead of 1.3%.
Inflation is projected at 2.2% for FY26, up from 1.9%.
The government still expects a primary budget surplus of 1.4 trillion yen in FY27.
- Who
- Japanese Cabinet Office
- What
- revised fiscal year 2026‑27 GDP growth forecast to 0.9%
- When
- mid‑year 2023 projections
- Where
- Japan
- Why
- higher imported energy costs and geopolitical tensions in the Middle East
- GDP growth forecast FY27
- 0.9%
- GDP growth forecast FY28
- 1.1%
- Inflation rate FY26
- 2.2%
- Nominal wage growth FY27
- 3.1%
- Primary budget surplus FY27
- 1.4 trillion yen
