Japan’s Economic Outlook Brightens: JETRO Forecasts 0.9% GDP Growth in 2025, but US Tariffs Loom
Tokyo, Japan – September 3, 2025 – The Japan External Trade Organization (JETRO) has revised its Gross Domestic Product (GDP) growth forecast for Japan in 2025 upwards to 0.9%. This upward revision signals a more optimistic outlook for the Japanese economy, driven by a combination of factors including robust domestic demand and a gradual recovery in global trade. However, JETRO also cautioned that potential risks, particularly those stemming from United States tariffs, remain a concern for the nation’s economic trajectory.
The revised forecast, published by JETRO on September 3, 2025, at 04:20, reflects a more positive assessment of Japan’s economic performance heading into the new year. This adjustment is attributed to several key drivers. Firstly, sustained strength in private consumption, supported by wage increases and a general improvement in consumer sentiment, is expected to continue underpinning economic activity. Secondly, capital investment by businesses is anticipated to remain healthy, driven by ongoing digitalization efforts, investments in green technologies, and the need to bolster supply chain resilience.
Furthermore, the global economic environment, while not without its challenges, is showing signs of stabilization. A gradual recovery in international trade, particularly in key Asian markets, is expected to provide a tailwind for Japanese exports. This positive sentiment is also bolstered by the Japanese government’s continued commitment to structural reforms aimed at enhancing competitiveness and fostering innovation.
Despite the encouraging upward revision, JETRO’s report highlights a significant lingering risk: the impact of potential tariffs imposed by the United States. The specific nature and scope of these tariffs, if implemented, could disproportionately affect Japanese industries that rely heavily on exports to the US market. The report emphasizes the need for Japanese businesses to remain vigilant and adaptable in response to evolving trade policies and to proactively explore strategies for diversifying export markets and strengthening domestic supply chains.
The article published by JETRO, titled “2025年のGDP成長率を0.9％に上方修正も、米国関税によるリスク残る” (GDP Growth Rate for 2025 Revised Upward to 0.9%, but Risks from US Tariffs Remain), serves as a valuable resource for businesses and policymakers alike. It underscores the delicate balance between positive domestic economic momentum and external geopolitical and trade-related uncertainties.
As Japan navigates the economic landscape of 2025, continued focus on supporting domestic demand, encouraging private sector investment, and strategically managing international trade relationships will be crucial for realizing sustained and robust economic growth. Businesses are advised to closely monitor developments in global trade policies and to build resilience into their operations to mitigate potential disruptions.
2025年のGDP成長率を0.9％に上方修正も、米国関税によるリスク残る
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日本貿易振興機構 published ‘2025年のGDP成長率を0.9％に上方修正も、米国関税によるリスク残る’ at 2025-09-03 04:20. Please write a detailed article about this news in a polite tone with relevant information. Please reply in English with the article only.