Economic Outlook Dims as Japan Adjusts GDP Growth Expectations

In a recent economic outlook report, Japan's Cabinet Office has adjusted its forecast for the country's gross domestic product (GDP) growth in 2024 to a modest 0.4%, a significant decrease from the previously anticipated 0.7%. This revision is attributed to the adverse effects of a major scandal within the automotive sector and a noticeable downturn in exports, exacerbated by a slowing Chinese economy.

2025 Growth Estimate Remains Unchanged

Despite the downward revision for 2024, the Cabinet Office has maintained its growth forecast for 2025 at 1.2%, indicating a hopeful yet cautious outlook for the country's economic recovery and expansion in the medium term.

Inflation Rate Forecast Steady

In addition to the GDP growth adjustments, the inflation rate prediction for 2024 remains steady at 2%, suggesting that while economic growth may be slowing, inflationary pressures are expected to remain consistent with previous estimates.