Country Economic Forecasts - Japan

Country Economic Forecasts - Japan

We have lowered our Q1 GDP growth forecast to 0.1% from 0.3% to reflect a dip in consumption and exports during this period. We have also raised our average CPI forecast for 2022 from 0.6% to 1.3% due to a shift in our oil price forecast. Although we expect the recovery to begin in Q2, the squeeze on households’ real incomes has led us to downgrade our projection for 2022 annual GDP growth to 2.8% from 3.1%.