Japan to forecast 1.7% growth for FY2016

The Japanese government is expected to forecast economic growth of 1.7 percent in real terms for fiscal 2016. Its upcoming economic outlook report foresees a continued moderate economic recovery. Government officials are now drawing up the report before drafting the national budget for the fiscal year that begins next April. They are set to keep the July growth forecast. The predicted 3.1 percent growth in nominal terms is up 0.2 point from the previous figure of 2.9 percent. The forecast assumes that consumer spending will hold firm as wages and the job market improve. Government officials say corporate earnings will benefit from falling crude oil prices, and that growth will also be aided/helped by an increase in demand for Japanese products abroad. The forecasts will be used to estimate tax revenues in compiling next fiscal year’s national budget. Prime Minister Shinzo Abe’s cabinet plans to finalize the draft budgets next...