Japan's economy will face a critical juncture this autumn
According to an article published by Yomiuri Shimbun on May 29: Based on the revised forecast by the Japan Asia-Pacific Research Institute for the Gross Regional Product (GRP) of the Kansai region comprising 2 prefectures and 4 prefectural-level cities for fiscal year 2026, it is projected to decline by 0.4% compared to March this year, while showing a 0.7% increase compared to the same period last year. This reflects rising energy and raw material prices due to deteriorating situations in the Middle East.
With crude oil prices increasing and real income declining, personal consumption is expected to drop by 0.2%. Exports have also been downgraded by 0.8%.
If instability in the Middle East persists for a long time, the negative impacts will expand. Senior researcher Yoshihisa Inada said: "During summer, government subsidies for electricity and gas bills have supported consumer spending; however, once these subsidies end in autumn, Japan's economy may face a critical turning point."
Original article: toutiao.com/article/1866494267504651/
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