Japan's government revised up on Thursday its growth forecast for the next fiscal year on prospects for higher business expenditure and substantial wage hikes that are seen underpinning consumption.
"Private sector demands will drive growth in fiscal 2023," the government said in a statement, although warning of downside risks from an overseas economic slowdown, inflation, supply bottlenecks and market fluctuations.
Japan's real gross domestic product is expected to expand 1.5% in the fiscal year beginning in April 2023, the government said in its new semi-annual projection, up from 1.1% in the previous forecast made in July.recent Reuters pollThe size of nominal GDP will likely reach 560.2 trillion yen in fiscal 2022 and 571.9 trillion yen in fiscal 2023, to hit fresh records for two consecutive years, exceeding the pre-pandemic level seen in 2019, the estimate showed.
The government left its overall consumer price index forecast for fiscal 2023 unchanged at an 1.7% increase from the July projection, pointing to the government subsidies to curb gasoline and utility bills and offset the rising living costs from higher import prices. The government's estimate underscores its hope that companies will increase wages next year to make up for the rising expenses due to higher
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