Japan downgrades GDP growth forecast

1st Nov 2024 09:33

(Sharecast News) - Japan's Cabinet Office has cut its economic growth predictions for the second time in four months as slowing global demand weighs on exports.

The government now expects GDP to expand by just 0.7% during the current fiscal year to March 2025. This marks a downward revision from 0.9% in July, when it made a similar downgrade.

The forecast for a 1.2% economic expansion the following year was left unchanged.

Current GDP forecasts for the calendar third quarter are pointing to a 0.7% annual expansion, a massive slowdown from the 2.9% growth seen in the second quarter.

The Cabinet Office's revision came just one day after the Bank of Japan unanimously decided to leave benchmark interest rates unchanged at 0.25%,