Analysis by Region - Asia Pacific - Japan

Analysis by Region - Asia Pacific - Japan



We've maintained our GDP growth forecasts for Japan at 1.2% for 2025 and 0.7% for 2026. We continue to expect the Japanese economy will grow in the upcoming quarters as a recovery in households' real income will support consumption. But exports will likely stay stagnant as weak demand from the EU counteracts the benefits from chip cycle upticks, limiting overall growth.


Japan: Gradual gains in real income will support growth
Forecast overview
Recent developments
Short-term outlook
Key drivers of our short-term forecast
Economic risk
Economic risk evaluation
Risk warnings
What to watch out for
Exposure to key global risks
Long-term prospects
Background
Economic development
Structure of the economy
Balance of payments and structure of trade
Policy
Economic policy

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