Japan cuts 2026 growth forecast to 0.9% as oil climbs
Business
Japan just lowered its 2026 economic growth forecast from 1.3% to 0.9%, mainly because oil prices are climbing fast due to Middle East tensions.
The government says this could slow down spending at home, but hopes that policy tweaks and better wages might help soften the blow.
Japan inflation rises amid weaker consumption
Private consumption is now expected to grow less than before, and capital investment is also taking a hit.
Inflation is set to rise higher than earlier estimates, putting extra pressure on the prime minister's team as many feel their pay isn't keeping up with price hikes.
Meanwhile, the Bank of Japan seems more optimistic thanks to strong exports and demand for AI tech, so there's some hope on the horizon.