GS - 2026 Japan Economic Outlook

2026

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This report forecasts steady economic growth for Japan in 2026, driven by domestic demand, while highlighting potential policy risks.

* **Economic Growth:** Japan's economy is projected to grow by 0.8% in 2026, supported by solid consumption and capital expenditures, despite a slight deceleration in external demand.
* **Inflation Outlook:** Underlying inflation is expected to rise moderately due to continued high wage growth, although headline CPI may decelerate due to lower food prices.
* **Monetary and Fiscal Policy:** The Bank of Japan is anticipated to accelerate its pace of rate hikes, while the Takaichi administration's expansionary fiscal policy will be closely monitored for its impact on fiscal soundness.

Japan Economy, Economic Outlook, 2026, Goldman Sachs, Monetary Policy

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