Cnn
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Another day, another element of evidence that the growing trade war of President Donald Trump with friends and enemies affects the world economy. Today: the Central Bank of Japan has half reduced its forecasts for economic growth for the country.
Thursday, the Bank of Japan reduced its expectations for 2025 Great Dostic Grocket to a 0.5%anemic, against the previous projection of + 1.1%, carried out in January. It has also reduced its growth forecasts for next year to 0.7%, down compared to the previous projection by + 1.0%.
“Japan’s economic growth is likely to moderate, because trade and other policies in each jurisdiction lead to a slowdown in economies abroad and a drop in national profits from companies and other factors,” the Japanese central bank said in a press release.
However, the bank noted that the booming and out -of -sight trade war had darkened its prospects.
“It is extremely uncertain how trade and other policies in each jurisdiction will evolve and how economic activity and prices abroad will react to them,” he said.
Japan is at the top of the list of countries with which the Trump administration has declared that it is negotiating a trade agreement.
Trump during an event from the Town Hall of the newspaper said on Wednesday that he had concluded “potential” trade agreements with Japan, South Korea and India, which would replace punishing “reciprocal” prices, although he has not provided details on these new transactions.
But Trump also made the urgency to do business agreements, noting: “They want us. We don’t need it. ” He also said that he was not in a hurry to conclude an agreement.
It is very unlikely that the United States and Japan, although ALLIES, be able to quickly conclude a new complex trade agreement. However, the Trump administration has said on several occasions that it was active talks with more than a dozen countries and expects to reveal at least a few memorandums of understanding the negotiation of terms for revised trade agreements in the coming days and weeks.
Japan forecasts occurred one day after the US trade department indicated that the trade war harms economic growth, sending the US economy in slight contraction in the first quarter. Consumer expenditure decelerated during the quarter and companies stored imported goods before the prices. This meant that imports exceeded exports, resulting in GDP growth.
Also on Wednesday, China reported that its factory activity contracted in April at the fastest rate in 16 months due to the massive prices of America on its goods and important prices for China on American imports.
The International Monetary Fund last month warned that the World Trade War hampered growth, especially in the United States.