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Sompo Institute Plus - Japan Economic Outlook

2026

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This report provides a comprehensive forecast for Japan's economic trajectory, highlighting key drivers and potential risks for policymakers and investors.

* **Economic Forecast:** Projects steady 0.9% real GDP growth for FY2025-2026, with moderating core CPI inflation from 2.7% to 1.7%.
* **Growth Drivers:** Fueled by private consumption recovery, resilient investment in software and automation, and strong exports, supported by a stable global economy.
* **Key Risks:** Identifies potential global downturns from a US "AI Bubble" correction and domestic risks from rising Japanese interest rates impacting investment and housing.

Tags: Japan economy, economic outlook, GDP forecast, inflation, global risks

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