Japan downgrades GDP growth forecast to 2.0% as slow demand hits exports

The government has slashed its economic growth forecast for this fiscal year largely due to slowing overseas demand, highlighting the impact of Russia’s war in Ukraine, China’s strict COVID-19 lockdowns and a weakening global economy.

The forecast, which serves as a basis for compiling the state budget and the government’s fiscal policy, included much higher wholesale and consumer inflation estimates as surging energy and food costs and a weak yen push up prices.