Japan's Government Revised Down Its Economic Forecasts
Natural disasters and weakening export demand have forced Japan's government to reduce its forecasts for economic growth and consumer prices for the current and next fiscal years. Revision of the forecasts follows disappointing data on quarterly gross domestic product and machinery orders.
The Japan's Cabinet Office expects, the economy will grow 0.9% in fiscal 2018, which ends in March, down from its previous projection of 1.5% growth. In fiscal 2019 the GDP will expand 1.3%, down from the previous forecast of 1.5% gain.
Overall consumer prices are expected to grow by 1.0% this fiscal year, down from a 1.1% gain expected previously. In fiscal 2019, overall prices will rise 1.1%, down from the previous forecast of a 1.5% growth.
It is also expected, that private consumption will expand 0.7% this fiscal year and then accelerate to 1.2% growth in fiscal 2019. Capital expenditure is awaited to grow by 3.6% in fiscal 2018 and then slow to 2.7% gain in fiscal 2019.