Japan cuts GDP, CPI forecasts | The Daily Star
12:00 AM, December 19, 2018 / LAST MODIFIED: 12:00 AM, December 19, 2018

Japan cuts GDP, CPI forecasts

Japan's government revised down its forecasts for economic growth and consumer prices for the current and next fiscal years as natural disasters and weakening export demand weighed on the economy, the Cabinet Office said on Tuesday.

The forecast cuts follow disappointing data on quarterly gross domestic product and machinery orders, highlighting the growing downside risks posed by a trade war between the United States and China.

The government will use the forecasts to finalise the state budget for the next fiscal year starting in April, which could present policymakers with a host of challenges as they prepare to raise the nationwide sales tax.

Japan's economy will grow 0.9 percent in fiscal 2018, which ends in March, the Cabinet Office said. That is down from its previous projection of 1.5 percent growth.

In fiscal 2019 the economy will expand 1.3 percent, also down from the previous forecast of 1.5 percent growth.

Overseas demand will not contribute to growth either in the current or the following fiscal year due to a slowdown in China's economy and weak demand for electronic parts in Asia, a Cabinet Office official said.

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