The Japanese government has cut its economic growth forecast for fiscal 2026 to 0.9 percent from 1.3 percent, citing higher crude oil prices and a weaker yen as risks to the import-reliant economy. The semi-annual report projects the yen at 161.4 per US dollar, weaker than the previous estimate of 155.2, and crude oil at 92.5 dollars per barrel, up from 68 dollars per barrel, even as wages and private consumption improve thanks to government subsidies. For fiscal 2027, the government forecasts GDP growth of 1.1 percent, supported by Prime Minister Sanae Takaichi's investment promotion drive, though it does not yet include a proposed cut in the consumption tax on food and beverages.