Japan’s economy shows signs of recovery, with AMRO forecasting modest growth of 0.1 per cent in 2024 and 1.3 per cent in 2025.
Inflation is expected to moderate to 2.2 per cent by 2025.
Despite a strong external position, Japan faces fiscal challenges, with a widening deficit projected for FY2024.
AMRO urges gradual interest rate hikes and fiscal reforms.