The Government of Japan anticipates that the world’s third largest economy grow 1.5% in real terms the next financial year 2023, for which it also estimates that its inflation rate will rise to 1.7%.
Japan’s gross domestic product (GDP) estimate for the fiscal year beginning in April 2023 and ending in March 2024 points to a slowdown from the current year, for which an expansion of around 2% is expected.
Japan’s GDP in nominal terms without adjusting for inflation would grow by 2.1% in fiscal year 2023according to the calculations of the Executive.
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The Government also foresees an increase in the consumer price index (CPI) of 1.7% for the next financial yearwhich would imply a deceleration with respect to the evolution of the indicator in the last months of this year, in which the index grows above 3%.
The Executive is thus confident that its measures aimed at containing the boom in the prices of materials and energy will take effect, including subsidies to lower electricity bills or aid for SMEs, and thereby mitigating global inflation which in Japan has been accentuated in 2022 by the depreciation of the yen.
Source: EFE