Japan trimmed its inflation-adjusted GDP forecast for the fiscal year to March
2027 to 0.9% from a January forecast of 1.3%, citing oil price rises tied to
Middle East tensions that are compressing household spending and corporate
Profits. Growth is seen accelerating to 1.1% in the following fiscal year on
stronger private consumption and robust capital spending. Private consumption in
the fiscal year to March 2027 is now expected to rise 0.9% (previous 1.3%);
capital expenditure is projected up 2.3% (previous 2.8%), underscoring pressure
from higher energy costs on Japan’s fuel-import-dependent economy.
