Japan’s growth is cut by 0.9%
The Japanese government conducted a review, which lowered its forecast for the Gross Domestic Product (GDP) of the current fiscal year
The Government of Japan has revised its GDP growth forecast four tenths down in its current fiscal year, which will end on March 31st, 2020, up to 0.9%, compared with 1.3% anticipated last month of January as a result of the slowdown in Japanese exports following the fall in Chinese demand.
The new official projections contemplate a growth of Japanese exports of 0.5% in fiscal year 2019, which would be the smallest increase since 2012 and would be far from the original projection of a 3% growth as a result of commercial tensions between China and the US.
Meanwhile, private consumption, which accounts for more than half of Japan’s GDP, will grow 0.9%, three tenths less than anticipated in January, while capital spending will increase 2.5%, somewhat due to below 2.7% previously planned.
Despite the reduction in the forecast for this fiscal year, the Japanese Government is confident that the economy will rebound to the next year, with an expansion of 1.2%.
K. Tovar
Source: La Vanguardia
