TOKYO -- Japan's first official economic forecast for fiscal 2020 paints a significantly rosier picture than private-sector predictions as the government downplays concerns ahead of a consumption tax hike this October.
Real gross domestic product will increase by 1.2% in fiscal 2020, the Cabinet Office said Monday. It foresees improvements in employment and pay, as well as stable consumer spending and capital investment. The government forecast projects nominal growth at 2% given the effect a higher consumption tax would have on prices.
