Japan lowered its forecast for 2014 growth
The Japanese government lowered its forecast for annual economic growth in fiscal 2014 because of lower expectations for domestic demand and exports. The Gross Domestic Product (GDP) in the third largest economy in the world will grow by 1.2% in the closing after March fiscal year, predicts the Economic and fiscal policy. The new forecast […]
The Japanese government lowered its forecast for annual economic growth in fiscal 2014 because of lower expectations for domestic demand and exports. The Gross Domestic Product (GDP) in the third largest economy in the world will grow by 1.2% in the closing after March fiscal year, predicts the Economic and fiscal policy. The new forecast is 20 basis points lower than planned in January to 1.4% GDP growth.
The private costs, which represent about 60% of Japan’s GDP is expected to rise by 0.3% in fiscal 2014, compared to the previously planned 0.4%. Expectations for growth in business investment you were raised to 4.9% from 4.4%. The Council also noted that it would monitor the consequences of raised in April sales tax, but says it expects the economy to enter a virtuous circle in which consumption growth will allow companies to increase production, which will lead to growth wages, additional support consumption.
The consumer price index is expected to rise by 1.2%, which means that the country will emerge from deflation after nearly 20 years.
