Fitch affirms Japan at 'A'; outlook Stable

In its latest review, Fitch Ratings affirmed Japan’s sovereign credit rating at ‘A’ while maintaining a ‘stable’ outlook.

Key takeaways

Expect Japan's general government (GG) deficit to narrow to about 5% of GDP in the fiscal year ending march 2023 (fFY22).

Forecast real GDP growth for japan at 1.3% in 2023.

Higher energy prices and Yen depreciation spurred inflation in Japan, we forecast to average 2.7% in 2023.

Base case remains that BoJ will maintain its loose monetary policy over medium term.