FILE PHOTO: Buildings under construction are seen in a general view from Tokyo Tower of the city of Tokyo, Japan, August 6, 2021. Picture taken August 6, 2021. REUTERS/Clodagh Kilcoyne
December 21, 2021
TOKYO (Reuters) -Japan is considering raising its forecast for fiscal 2022 real gross domestic product (GDP) growth to 3.0% or more after taking into account the impact of a record $317 billion extra budget, the Yomiuri newspaper reported.
The projection would be an upgrade from a forecast for 2.2% real GDP growth for the fiscal year starting in April 2022 released at a mid-year review in July.
The cabinet was set to approve the new forecast on Thursday, Yomiuri said. The update comes after parliament on Monday approved the 36 trillion yen ($316.73 billion) extra budget for the current fiscal year.
Japan has lagged other advanced nations in overcoming a coronavirus pandemic-induced slump, forcing policymakers to maintain massive fiscal and monetary support even as crisis mode policies are dialled back elsewhere.
The world’s third-largest economy declined an annualised 3.6% in the third quarter following a resurgence of COVID-19 cases over the summer, which led to fresh restrictions that curbed growth, especially private consumption.
The government was likely to lower its forecast for fiscal 2021 growth to about 2.5% from 3.7% expected previously, Yomiuri said, adding it was also likely to delay its forecast for a return to pre-coronavirus levels to beyond the year-end.
($1 = 113.6600 yen)
(Reporting by Daniel Leussink and Kantaro Komiya; Editing by Muralikumar Anantharaman and Jane Wardell)
Source: One America News Network
