People wearing face masks walk through the Shibuya scramble crossing in Tokyo, Japan, Jan. 21, 2021. (Xinhua/Zhang Xiaoyu)
Japan upgrades the economic expectation to a real 1.5 percent in fiscal 2023, with the GDP growth being projected to reach 4.22 trillion U.S. dollars amid expectations for increased capital spending and private consumption.
TOKYO, Dec. 23 (Xinhua) -- The Japanese government on Thursday revised upward its economic growth forecast for fiscal 2023 to a real 1.5 percent on expectations for increased capital spending and private consumption.
The upwardly revised forecast is a 0.4-point increase from the government's previous projection of a 1.1-percent growth made in July.
According to the Cabinet Office, GDP in fiscal 2023 (April 2022-March 2023) is now forecast to reach 558 trillion yen (4.22 trillion U.S. dollars), surpassing fiscal 2018's record of 554 trillion yen (4.19 trillion dollars).
From the previous fiscal year, the office said that nominal GDP is also forecast to hit a new high of 571 trillion yen (4.32 billion dollars), marking an increase of 2.1 percent.
With real wages expected to rise, the government said it projects private consumption, which accounts for more than half of the economy, to increase 2.2 percent in fiscal 2023.
People wearing face masks walk through the Shibuya scramble crossing in Tokyo, Japan, Jan. 21, 2021.(Xinhua/Zhang Xiaoyu)
In addition, it expects businesses to spend more with a 5-percent rise in capital spending projected, while private investment is forecast to rise owing in part to the government's 29.1-trillion-yen (220.41-billion-U.S. dollar) stimulus package aimed to help counter rising prices.
The government also said it expects the Japanese economy to be bolstered by exports increasing by 2.4 percent looking ahead, while imports are projected to rise by 2.5 percent.
The government's GDP forecast for the current fiscal year was revised downwardly, however, from 2.0 percent to 1.7 percent, owing to the impact of surging prices for energy and food. ■
