Japan’s Cabinet Office projects the economy to grow just 0.9% in the fiscal year ending March 2020. That’s a notable downgrade from prior forecast of 1.3%. For the following year, growth is forecast to pick up to 1.2%, though.
For the current fiscal year, exports growth is forecast to slow to just 0.5%, sharply lower than January’s projection of 3.0%. That would be the weakest growth since fiscal 2012. On the other hand, robust corporate investment and private consumption should help offset some of the drag from exports.
On prices, the Cabinet office forecasts over CPI to be at 0.7% in this fiscal yet, and 0.8% next. Both figures are well below BoJ’s 2% target.
Separately, Economy Minister Toshimitsu Motegi said he would hold ministerial-level talks with US Trade Representative Robert Lighthizer on August 1-2 in Washington for trade negotiations.
