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flag Japan boosts 2025 growth forecast to 1.1% amid stimulus and stronger demand.

flag Japan has raised its fiscal year 2025 growth forecast to 1.1% from 0.7%, citing weaker-than-expected U.S. tariff impacts and stronger domestic demand. flag Under Prime Minister Sanae Takaichi, the government projects 1.3% growth in 2026, driven by rising consumption and capital spending. flag A 21.3 trillion yen stimulus package includes family payments, utility subsidies, and investments in AI and semiconductors. flag Record budget spending is expected, raising concerns over debt and bond yields.

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