Japan economy heading to 2.5 per cent growth
Tokyo, January 29 (AZERTAC). Japan said yesterday that the world`s number three economy was on track to expand 2.5 per cent in the fiscal year starting in April, thanks to fresh stimulus and a recovery in overseas markets.
Prime Minister Shinzo Abe`s Cabinet approved the forecast - higher than an estimate of 1pc growth for the current year to March, government officials said.
The estimate is slightly higher than those from economists who have also upped their outlook on the back of a weaker yen and new stimulus measures.
“We are forecasting that the economy will recover as the global economy is expected to pick up gradually, while we`re also expecting a steady recovery in demand and an increase in jobs” at home, Chief Cabinet Secretary Yoshihide Suga told a press briefing.
The government`s top spokesman warned that several factors could impact the final growth figure, including swelling public debt and fluctuations in the yen, a key factor for the country`s trade picture.
Last week, the Bank of Japan raised its growth forecast for the same fiscal year to 2.3pc from a previous 1.6pc estimate, as it announced an open-ended asset buying programme and new inflation target aimed at ending the deflation that has haunted the economy for years.
Abe, who took office late December after a landslide national election victory, unveiled a 20.2 trillion yen stimulus package this month in the latest bid to stoke growth in the limp economy. The figure also includes local government and private-sector spending.
Tokyo`s new forecast will be used to produce a fresh budget, with Abe`s cabinet set to endorse 92.6trn yen in spending today, Japanese media reported.
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