Japan poised to upgrade 2020 GDP forecast to 1.4% - report

Friday, 13. December 2019 18:52

Japan's gross domestic product is in 2020 expected to land at 1.4%, according to the latest government's estimates seen by Nikkei Asian Review. The forecast is 0.2% higher than the government's own previous estimate from July when the forecast GDP for the next fiscal year starting in April 2020 landed at 1.2%.

Domestic demand is expected to contribute 1.5 percentage points to 2020 growth, partially thanks to a massive stimulus package approved last week which will infuse the economy with an additional $121 billion in order to offset a potential slowing down of the economy following the Tokyo Olympics next year. Other risks, such as the US-China trade dispute, have also been factored in.

However, the government sees weak external demand for Japanese goods, the sources said. Compared to the July estimate, when global demand was expected to boost growth by 0.2 percentage points, the government economists now see it as weighing down on growth by 0.1%.

Prime Minister Shinzo Abe is expected to approve the forecast in the coming days.

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