Japan Estimates FY 2020 GDP Growth at Minus 4.5 Pct

Economy

Tokyo, July 30 (Jiji Press)--The Cabinet Office estimated Japan's fiscal 2020 gross domestic product growth at minus 4.5 pct in price-adjusted real terms on Thursday, sharply down from the government's forecast of plus 1.4 pct as of January, reflecting stagnant economic activities amid the coronavirus epidemic.

The 4.5 pct contraction would be steeper than the decline of 3.4 pct in fiscal 2008, when the economy was battered by the global financial crisis triggered by the collapse of U.S. investment bank Lehman Brothers in September 2008.

The Cabinet Office estimate, presented at a meeting of the government's Council on Economic and Fiscal Policy on the day, was still optimistic, compared with the average projection of 5.4 pct negative growth by private economists in a recent Japan Center for Economic Research survey.

For fiscal 2021, the Cabinet Office projected the country's real GDP growth at plus 3.4 pct, expecting the domestic economy to gradually head for recovery from July-September 2020, in line with phased reopening of economic activities.

In fiscal 2020, private consumption and corporate capital spending are estimated to drop 4.5 pct and 4.9 pct, respectively. Exports are forecast to slump 17.6 pct.

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Jiji Press