The Japanese economy is expected to continue to grow at a moderate pace in 2025 supported by solid consumer spending on the back of wage hikes and the government’s policies aimed at easing inflation pain.
Stimulus efforts overseen by the administration of Prime Minister Shigeru Ishiba will be in focus ahead of an upper house election in summer, which follows his ruling coalition’s poor showing in October’s general election. Analysts also warn of downside risks from U.S. President-elect Donald Trump’s protectionist approach to international trade.
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