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

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.