Key Facts
• On August 7, the government held an Economic and Fiscal Policy Council meeting.
• Prime Minister Ishiba projected a 0.7% real GDP growth rate for fiscal year 2025.
• Factors include inflation, U.S. tariff measures, and wage-driven income improvements.
• Domestic demand is expected to be supported by various government policies.
• The Cabinet Office forecasts a primary balance surplus for national and local governments by 2026.
Summary
Prime Minister Ishiba announced during the Economic and Fiscal Policy Council meeting that Japan’s real GDP growth rate for fiscal year 2025 is expected to reach approximately 0.7%. Despite challenges such as inflation and U.S. tariff measures, continued wage increases and government policies are anticipated to bolster domestic demand. Additionally, the Cabinet Office’s long-term projections indicate a primary balance surplus for both national and local governments by 2026, signaling potential fiscal stability.
