The economic projection is based on increasing government spending to stimulate the economy through improvement of social services and assistance to the agricultural sector.
TOKYO, 22 Dec. Ivan Zakharchenko. The growth of the Japanese economy in fiscal year 2016 (starts from April) will amount in real terms by about 1.7% due to revival of demand and investment, passed on Tuesday, the Agency Kyodo with reference to the forecast of the government of Japan.
In nominal terms, gross domestic product will increase by 3.1% to reach a record level for the last 19 years in 518,8 trillion yen (a 4.3 trillion dollars).
In 1997, GDP reached 521 trillion yen.
The economic Outlook in Japan is based on the increasing government spending to stimulate the economy through improvement of social services and assistance to the agricultural sector.
As noted by Kyodo, however, the government forecast is more optimistic than the one that was drawn up in October of this year the Bank of Japan and foresaw the growth of the economy within 1.4% for the 2016 financial year.
The government of Japan expects growth of prices of about 1.2% compared to the current year, mainly due to the fall in oil prices. The Bank of Japan, inflation in the country may reach 2%.
The Japanese Cabinet plans to approve spending for 2016 on Thursday.