Japan’s economy is expected to grow by 1.3% this year as businesses expand investments driven by strong earnings and digitalization initiatives. Exports and tourism are projected to remain robust, provided there is no sharp slowdown in major global economies. Meanwhile, inflation is expected to remain above target, with CPI (excluding fresh food) inflation estimated to average 2.2% in 2025. Amid global uncertainties, Japan will need stronger fiscal consolidation efforts to sustain economic resilience.
Download AMRO’s 2024 Annual Consultation Report on Japan here.