According to sources, the Japanese government plans to lower its economic growth forecast

On July 12, two government sources said that Japan is expected to slightly cut its economic growth forecast of 1.3% for the financial year ending in March 2025 as consumption is hit by higher import costs caused by the depreciation of the yen. The Japanese government usually releases economic growth forecasts in January and then revises them around July. The economic growth forecast could be cut to about 1.0% in the revised forecast to be released next week, and the impact of the rising cost of living on consumption could be longer than initially expected, the sources said. However, the new estimate will still be higher than the private sector forecast, reflecting the government's hope that expanding wage increases and extending fuel subsidies will boost consumer spending.