TOKYO (Jiji Press) — The Japanese government has announced its official projection for the country’s gross domestic product (GDP) in fiscal 2024. According to this projection, the GDP is expected to grow by 1.3% from the previous year after adjusting for price changes. This positive outlook comes on the heels of the government’s recent implementation of a comprehensive economic package aimed at stimulating domestic demand and supporting businesses through measures such as fixed-amount tax cuts and investment support.
The government’s forecast for real GDP in the coming fiscal year is an impressive ¥568 trillion, which, if achieved, will represent a record high for Japan. In addition, the government is expecting a 3% increase in nominal GDP for fiscal 2024. This optimistic projection is underpinned by anticipated growth in personal consumption, which is expected to rise by 1.2% in the next fiscal year, a significant improvement from the 0.1% growth estimate for fiscal 2023. This increase in personal consumption is crucial for driving domestic demand forward.
Furthermore, the government is forecasting a 3.3% increase in corporate capital expenditures and a 3.0% increase in exports for fiscal 2024. These numbers signal confidence in the resilience and growth potential of the Japanese economy. As for consumer prices, the government is projecting a 2.5% rise in the overall consumer price index, including fresh food prices, for fiscal 2024. While this is a decrease from the 3.0% growth estimate for fiscal 2023, it still reflects a healthy level of inflation that can support economic growth.
Looking back at fiscal 2023, the government has revised up its real GDP growth projection to 1.6% from the initial projection of 1.3% made in July. This revision is attributed to a rise in exports, particularly of automobiles, due to easing semiconductor shortages, as well as a decline in imports. It’s important to note that while rising exports have a positive impact on GDP, imports have the opposite effect. This revision reflects the dynamic and ever-changing nature of the global economy and its impact on Japan’s economic performance.
Overall, the government’s projections for Japan’s economy paint a promising picture. The expected growth in GDP, personal consumption, corporate expenditures, and exports, combined with manageable inflation, suggest that Japan is well-positioned for robust economic expansion in the coming years. As the government’s comprehensive economic package takes effect, all eyes will be on Japan’s economic performance to see how these projections materialize in reality.
