Japan’s government upgraded fiscal 2021 (starting in April) GDP growth forecast to 4.0%, up form July estimate of 3.4%. If realized, that would be the largest expansion since data became comparable in 1995. Also, real GDP in March quarter of 2022 would be around the pre-pandemic level in December quarter of 2019.
The government’s newly approved JPY 74 trillion policy package would “underpin the economy and boost private demand such as capital expenditures”, said a Cabinet official.
Policymakers need to keep a close watch “on downside risks to the economy in Japan and overseas from the pandemic and impacts from moves in financial capital markets,” he added.
