Japan to Nearly Double Growth Forecast
Japan’s government has decided to upgrade its economic growth forecast to about 2.6 per cent for the year to March 2011, from an earlier projection of 1.4 per cent, reports said Monday.
The report comes as exports continue to show a stable recov- ery, particularly in trade with robust Asian economies, while the fall in corporate capital investment had started to slow, the Nikkei newspaper said.
The new forecast will be announced after the cabinet approves new fiscal rehabilitation measures on Tuesday, Kyodo News said, citing government sources.
“The government has judged that the economy will continue to recover at a faster pace than initially anticipated, backed by strong exports to China and other Asian countries as well as firm personal consumption in Japan,” Kyodo said.
If realised, the projection would mark the first expansion in Japan in three years.
Japan’s economy grew an annualised 5.0 per cent in the January-March quarter, with rising exports and signs of improving domestic demand.