0358 GMT - Geopolitical tensions between Japan and China could have a knock-on effect on the Japanese economy, Goldman Sachs economists say. The largest impact could come from a decline in visitors from China and Hong Kong, they say. A 50% drop in tourism from China and Hong Kong could slow Japan's economic growth by about 0.2 percentage point. If that is offset by visitors from elsewhere and domestic tourists, GS sees a 0.1 percentage point net impact on growth. Trade is a potential pain point, too, as Japan's exports to China account for about 3% of GDP. If China expands export restrictions beyond some consumer goods, the economic impact would be more severe. GS notes that tensions between Japan and China remain highly fluid, and that its analysis is based on a number of assumptions.(fabiana.negrinochoa@wsj.com)

(END) Dow Jones Newswires

November 27, 2025 22:58 ET (03:58 GMT)

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