Analysis by Region - Asia Pacific - Japan

We've maintained our GDP growth forecasts for Japan at 1.2% in 2025. We continue to expect the economy will grow in the coming quarters, following a slight GDP contraction in 2024, as a recovery in households' real income will support consumption. Amid gradual economic growth, we believe the Bank of Japan will continue to cautiously hike rates.


Japan: The BoJ resumes cautious rate normalisation process
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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