TOKYO, July 19 Reuters Japan39;s government cut this year39;s growth forecast on Friday as consumption took a hit from rising import costs due to a weak yen, highlighting the fragile nature of the economic recovery.

But it projected growth to accelerate next year on robust capital expenditure and consumption, retaining its view the economy will sustain a domestic demandled recovery.

Some members of the government39;s top economic council, however, voiced concern over recent weakness in consumption and the pain the yen39;s fall was inflicting on households.

We can39;t overlook the impact a weak yen and rising prices are having on households39; purchasing power, the privatesector members of the council told Friday39;s meeting that discussed the new growth forecasts.

The government and the Bank of Japan must guide policy with a close eye on recent yen declines, they said.

Prime Minister Fumio Kishida told the meeting that the government must be vigilant about the impact rising prices, driven in part by a weak yen, can have on the economy, according to the Kyodo news agency.

The government releases its economic growth forecasts in January and then revises them around July. They serve as a basis for compiling the state budget.

In the revised estimates, the government cut its economic growth forecast for the current fiscal year ending in March 2025 to 0.9 from 1.3 projected in January.

The new forecast is above privatesector forecasts for 0.4 growth, reflecting…