Japan to miss 2025 primary balance goal.

Japan's primary balance is projected to miss its budget target, with a deficit of ¥4.5 trillion for the upcoming fiscal year.

Japan to miss 2025 primary balance goal.

Japan’s primary balance is once again missing the target for a balanced budget by March 2026. According to the latest report from the Cabinet Office, the primary balance—excluding interest on public debt—is expected to show a deficit of about ¥4.5 trillion ($28.8 billion) or minus 0.7% of GDP in the coming fiscal year starting in April.

Just a few months ago, in July, the government was predicting a surplus of 0.1% of GDP for the year, hinting that Japan might actually hit its goal of balancing the books at the primary level. But here we are, back to square one with another deficit looming. Talk about a twist!

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