Japan raises fiscal year ‘21 GDP growth forecast to 4% on stimulus

SINGAPORE (ICIS)–Japan’s government on Friday raised its economic growth forecast for the next fiscal year – starting April 2021 – on a price-adjusted real terms to 4.0% from 3.4% previously, supported by its latest coronavirus stimulus package.

For the current fiscal year ending March 2021, the world’s third-biggest economy is projected to shrink at a steeper rate of 5.2% from the previous forecast of 4.5%, according to Japan’s Cabinet Office.

Japanese Prime Minister Yoshihide Suga last week announced a fresh stimulus package worth yen (Y) 73.6tr ($712bn).

“The economy is expected to show movements of picking up, supported by the effects of the policies and improvement in overseas economies while the socio-economic activities will be resumed with taking measures to prevent the spread of infectious diseases,” the Cabinet Office said.

($1 = Y103.4)

Photo: Cars wait to be exported at Yokohama port, near Tokyo, Japan on 29 September 2020. (Photo by Koji Sasahara/AP/Shutterstock)

Visit the ICIS Coronavirus topic page for analysis of the impact on chemical markets and links to latest news.