Gov't cuts Japan's FY 2026 GDP growth outlook to 0.9% on higher oil prices

TOKYO - The Japanese government on Thursday cut its economic growth outlook to 0.9 percent for the current fiscal year from April, down from an earlier estimate of 1.3 percent as higher crude oil prices hit the import-reliant economy.

The Cabinet Office also unveiled its latest projections for the primary balance, a key indicator of a country's fiscal health, expecting a 1.4 trillion yen ($8.6 billion) surplus in fiscal 2027 on a boost in tax revenues, compared with last month's estimate of a deficit of 2.1 trillion yen.