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Japan gov't lowers FY 2019 economic growth forecast

Source: Xinhua| 2018-12-18 23:22:52|Editor: yan
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TOKYO, Dec. 18 (Xinhua) -- The Japanese government on Tuesday lowered its growth forecast for the domestic economy in the fiscal year 2019 from an earlier estimation of 1.5 percent in real terms to 1.3 percent.

According to Japan's Cabinet Office, private consumption, which accounts for more than half of Japan's gross domestic product (GDP), was expected to grow 1.2 percent despite a tax hike slated for October next year, unchanged from the previous forecast in July.

Capital expenditure, however, is projected to increase 2.7 percent in real terms, down from the 3.4 percent forecasted previously, said the government, citing slower global economic growth.

The government also lowered its inflation forecast for fiscal 2019, with consumer prices including energy and fresh food projected to rise 1.1 percent instead of an earlier estimation of 1.5 percent, as the Bank of Japan's 2-percent inflation target remains far-flung.

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