ArrowArtboardCreated with Sketch.Title ChevronCrossEye IconIcon FacebookIcon LinkedinShapeCreated with Sketch.Icon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Economy

Japan trims 2019 growth forecast to 1.3%

Figure still better than outlooks of central bank and private sector

Japan is expected to lower its official gross domestic product forecast for fiscal 2019. (Photo by Tsuneyuki Kenmochi)

TOKYO -- The Japanese government intends to revise down its official gross domestic product forecast for fiscal 2019 to 1.3% real growth from the 1.5% announced in July, Nikkei has learned.

The cabinet is expected to approve next week the new forecast, which will serve as the basis for drawing up budget proposals. The figure is still optimistic compared with the less-than-1% growth forecast by the Bank of Japan and private-sector economists.

Growing uncertainties from the U.S.-China trade war and a potential slowdown in the world economy seem to be among the considerations. And Japan is moving to raise its consumption tax rate to 10% from the current 8% next October. A 1 percentage point increase in the sales tax pushes down Japan's real GDP by 0.3%, the Cabinet Office estimated in September.

To allay the impact, the government is planning various stimulus measures including gift certificates, reward points, and assistance on purchases of homes and cars.

The growth estimate for the current fiscal year through March, also to be revised soon, will likely be a 0.9% increase, down from the 1.5% rise announced in July.

In the July-September quarter, real GDP shrank an annualized 2.5%, due to a series of natural disasters like flooding and earthquakes that disrupted production activities. A slowing smartphone market also apparently suppressed demand for semiconductor-related equipment, which has driven the Japanese economy.

Get unique insights on Asia, the most dynamic market in the world.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends January 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media