Japan Forecasts 1.3 Pct Real Economic Growth for FY 2019

Economy

Tokyo, Dec. 18 (Jiji Press)--Japan's gross domestic product for fiscal 2019 is projected to grow 1.3 pct year on year in price-adjusted real terms, the government's latest economic outlook showed Tuesday.

The government forecasts that measures to cushion the impact of the consumption tax increase in October 2019 from the current 8 pct to 10 pct, such as the distribution of shopping reward points, as well as public works projects for disaster prevention and reduction, will support the Japanese economy, according to the outlook adopted at a cabinet meeting.

The growth forecast for the year from next April is higher than projections by the Bank of Japan and private-sector think tanks, which are mostly less than one pct.

However, it is lower than the Cabinet Office's 1.5 pct growth estimate in July, in view of the growing uncertainty over the global economic climate amid continued trade friction between the United States and China.

The government's economic outlook will serve as a basis for the tax revenue estimate used in the compilation of the fiscal 2019 draft budget, which is likely to be adopted on Friday.

[Copyright The Jiji Press, Ltd.]

Jiji Press