The weak yen has hit consumption, and Japan has lowered its economic rise expectations for this fiscal year.

On July 19th, Jinshi Data reported that the Japanese government lowered Japan's economic growth expectations on Friday, lowering the economic growth forecast for fiscal year 2024 from 1.3% to 0.9% due to the weak yen, which pumped up import costs and thus hit consumption. However, the government expects that due to strong capital expenditures and consumption, next year's economic growth will accelerate, and it continues to believe that the economy will maintain a demand-driven recovery. Some members of the government's highest economic committee expressed concerns about the recent weakness in consumption and the pain caused by the yen's decline to households. Private sector members of the committee stated at a meeting on Friday to discuss new growth forecasts that the impact of the weak yen and price pump on household purchasing power cannot be ignored, and the government and the Bank of Japan must closely follow the recent decline of the yen. The government expects the economic growth rate for fiscal year 2025 to be 1.2%.