Japan Govt Expects 1.3% Economic Growth in FY 2024

Jiji Press

17:39 JST, December 21, 2023

TOKYO (Jiji Press) — The government Thursday adopted an official projection that the country’s gross domestic product in fiscal 2024 will grow 1.3% from the previous year in price-adjusted real terms.

The government expects that its comprehensive economic package adopted last month, featuring fixed-amount tax cuts and investment support measures for companies, will help the economy achieve domestic demand-led growth.

The government predicts Japan’s real GDP to hit a record high of ¥568 trillion in the coming fiscal year.

The government predicts a 3% increase in fiscal 2024 nominal GDP. For the next fiscal year, the government anticipates a 1.2% rise in personal consumption, the main pillar of domestic demand, against its fiscal 2023 growth estimate of 0.1%.

Corporate capital expenditures are forecast to achieve a 3.3 pct increase, while exports are expected to climb 3.0 pct.

The government predicts the country’s overall consumer price index, including fresh food prices, to rise 2.5 pct in fiscal 2024, against a 3.0 pct growth estimate for fiscal 2023.

For fiscal 2023, the government also revised up its real GDP growth projection to 1.6 pct from its July projection of 1.3 pct, reflecting rising exports of mainly automobiles thanks to an easing of semiconductor shortages, as well as a decline in imports, whose growth impacts GDP negatively.