From None: 2025-01-13 04:47:06

Barclays analysts predict Japan’s real GDP growth to hit 1.2% in FY25, surpassing its 0.8% potential rate. Wage growth, expected to increase by 5%, will drive domestic demand and economic expansion. Inflation is projected to hover around 2%, with a slight dip due to yen appreciation and energy subsidy normalization.

The Bank of Japan is anticipated to raise interest rates twice in 2025, reaching 0.75% by October. Factors influencing this decision include global trade uncertainty and domestic political challenges faced by the LDP-Komeito coalition.

Risks to Japan’s economic outlook include potential disruptions from U.S. trade policies, political instability affecting capex, and external risks like global trade tensions and geopolitical instability.

Barclays’ positive forecast emphasizes Japan’s ability to capitalize on wage growth and domestic demand for sustainable economic recovery. However, caution is advised due to risks posed by global trade policies and domestic political instability.



Read more at None:: Barclays Predicts Japan’s Economy to Rebound in 20…