Japan defense buildup leads to tripling of primary deficit projection
Japan’s primary deficit will triple from its earlier projection to ¥1.5 trillion ($11.5 billion) in fiscal 2025, the target year when the government aims to turn a surplus, due to a substantial increase in defense spending, government projections showed Tuesday.
The revised projections are based on the assumption that Japan’s economy will grow 2% in real terms, with the balance possibly deteriorating further if economic growth slows.
In its outlook, the government retained its assessment that Japan will achieve a surplus in the primary balance in fiscal 2026 of ¥2.5 trillion.
In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.
SUBSCRIBE NOW
