Japan Lowers Growth Forecast Due to Weak Yen Impact

Economic recovery faces challenges as rising import costs hurt consumption, but growth is expected to pick up next year.

Japan's growth forecast for the current fiscal year has been reduced from 1.3% to 0.9%.
The weak yen has increased import costs, negatively affecting household consumption.
Government hopes wage hikes, tax cuts, and fuel subsidies will boost spending.
Growth is projected to accelerate to 1.2% in the next fiscal year on strong capital expenditure.
Policymakers are concerned about the yen's decline and its impact on the economy.