BNP Paribas economists say Japan will likely face continued inflationary pressure as import prices are expected to remain above pre–Middle East-crisis levels. Although Strait of Hormuz tensions have eased, a shift to higher-cost U.S. crude, sharply higher insurance premiums and a weak yen are expected to keep import costs elevated; an AI investment boom and a strong equity market should sustain domestic demand, and aggregate demand may remain robust in H2 as geopolitical uncertainty recedes.

President Trump has requested $11.1 bln from Congress in emergency aid for struggling farmers, submitted as part of a supplemental appropriations package that includes defense spending. The proposal would allocate $10 bln for corn, soybean and rice growers and $1.1 bln for Florida producers hit by winter storms in late 2025 and early 2026. This would be the farm sector's second bailout this year; the funds remain subject to congressional approval.

IMF is closely monitoring the situation in Venezuela and is in contact with Venezuelan authorities to assess post-earthquake needs.