Japan approved a record $730 billion budget for fiscal 2025, prioritizing defense and social programs to address security concerns and rising costs from its aging population.
Japan set a record with over 33 million foreign visitors in 2024, driven by a weak yen and strong tourism growth, surpassing its pre-pandemic high of 31.88 million in 2019.
Business confidence among Japan’s manufacturers improved to 14 in December, surpassing market forecasts, while nonmanufacturers’ sentiment declined slightly, highlighting mixed economic signals.
Japan’s GDP grew 0.9% in Q3, supported by consumer spending driven by tax cuts and bonuses. Domestic demand offset external pressures, showcasing the resilience of Japan’s economy.
The Bank of Japan held its interest rate steady at 0.25% and updated its inflation forecast, predicting moderate stability in Japan’s economic growth through to fiscal 2025.
