Japan Govt: Economy To Expand 1.4% In Fiscal 2010

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Friday, the Japan's government said the economy would expand 1.4% in fiscal 2010 after contracting 2.6% in the current fiscal, which ends in March 2010. The economy would be growing for the first time in three years.

In its economic outlook, the Cabinet Office said overall consumer prices would fall 0.8% in fiscal 2010 following a 1.6% decline estimated for fiscal 2009. The government urged the Bank of Japan to take necessary measures to support the economy as mild deflation is expected to persist. It added that the government will work with the BoJ to address deflation.

Moreover, the government sees strong domestic demand in the coming months, boosted by the stimulus package. Private consumption is forecast to rise 1% next fiscal year after 0.6% growth this fiscal.

Unemployment rate would be at 5.3% next fiscal year, slightly down from a record 5.4% estimated for this year. Japan's economic recovery would be gradual, the cabinet office added.

Friday, the Japan's government said the economy would expand 1.4% in fiscal 2010 after contracting 2.6% in the current fiscal, which ends in March 2010. The economy would be growing for the first time in three years. (Market News Provided by RTTNews)