The downward revision reflected delays in the recovery of automobile exports, impacted by certification-related issues with certain manufacturers.
Japan Economy (Photo:IANS)
Japan’s cabinet office on Friday lowered its growth forecast for the current fiscal year to an expansion of 0.7 per cent in inflation-adjusted real terms, down from a previous projection of 0.9 per cent in July.
The downward revision reflected delays in the recovery of automobile exports, impacted by certification-related issues with certain manufacturers.
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The new forecast, released by the government at a meeting of the Council on Economic and Fiscal Policy, was also slightly below last year’s growth rate of 0.8 per cent, Xinhua news agency reported.
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The cabinet forecast that consumer prices could remain high, with consumer price index expected to increase 2.6 per cent this year following a three per cent rise last year.
Looking ahead, the cabinet expected the economy to grow 1.2 per cent next fiscal year, supported by a recovery in private consumption and steady corporate investment.
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