Japan defense buildup helps triple primary deficit projection

Japan’s primary deficit will triple from its earlier projection to 1.5 trillion yen ($11.5 billion) in fiscal 2025, the target year when the government aims to turn a surplus, due to a substantial increase in defense spending, government projections showed Tuesday.

The revised projections are based on the assumption that Japan’s economy will grow 2 percent in real terms, with the balance possibly deteriorating further if economic growth slows.

In its outlook, the government retained its assessment that Japan will achieve a surplus in the primary balance in fiscal 2026 of 2.5 trillion yen.

Unde...