Japan’s Cabinet Office reduced its forecast for real GDP growth in the 2025 fiscal year from around 1.2 percent as recorded in January, after accounting for the effects of U.S. tariff policies.
The Japanese government revealed that its primary budget surplus for fiscal year 2026, which begins in April next year, will exceed its January estimate of about 2.2 trillion yen (USD 14.94 billion), thanks to increased tax revenues.
The government is expecting a deficit for the current fiscal year ending March 2026, although it is projected to be lower than the 4.5 trillion yen recorded in January.
Source (Al-Sharq Al-Awsat Newspaper, Edited)