Japan to Project Nominal Growth of 2.7 Pct for FY 2013
Optimistic forecast for GDP growth next year … a big problem when you are using such forecasts to set budgets…
The government will project that Japan’s nominal gross domestic product will expand 2.7 pct in fiscal 2013, outpacing real-term GDP growth for the first time in 16 years, sources said Friday.…The anticipated projections will be far higher than growth of 1.7 pct in real terms and 1.9 pct in nominal terms for fiscal 2013 that the Cabinet Office estimated in summer last year. But it is uncertain whether the economy will grow so strongly.
The planned projections will be used to set a state budget for fiscal 2013 starting in April and regarded as effective government economic targets.
Japan FY 2013 Budget to Hit Record High around 93.5 T. Yen Related to the previous article.