We forecast Japan's real GDP growth at above 2.5% in fiscal 2022 (ending March 31, 2023) as the economy recovers further from the impact of the pandemic. This will allow the general government deficit to continue a gradual decline from levels in the past two fiscal years. We affirmed our 'A+' long-term and 'A-1' short-term sovereign credit ratings on Japan. The stable outlook reflects our view that, at least until fiscal 2025, relatively large fiscal deficits will continue to keep upward pressure on government debt ratios. On April 28, 2022, S&P Global Ratings affirmed its 'A+' long-term and 'A-1' short-term unsolicited sovereign credit ratings on Japan. The outlook on the long-term rating is stable. The stable outlook reflects our expectations
