Japan Market Daily | Kabutaro & Friends

The deterioration of the Middle East situation continues, pushing up energy prices and increasing geopolitical risks. Asia’s growth rate is expected to slow to 5.1% in both 2026 and 2027, with high energy costs raising production costs and inflation. While global trade continues to expand in early 2026, inflationary pressures and rising trade costs are expected to slow growth. In the United States, growth is slowing but remains positive, with sticky inflation prompting continued caution in monetary policy. Overall, high energy prices, inflation, and geopolitical risks are increasing uncertainty in the global economy.