Japan govt sees economy shrinking this year on Covid-19 hit-sources

published 29.07.2020 12:12

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Under its most pessimistic scenario for the fiscal year through March 2022, the government expects to see nearly flat, but still positive GDP growth, another source said.

The government had previously forecast 1.4 per cent growth this fiscal year based on a boost to domestic demand from stronger corporate investment and a fiscal package it approved last December.

Real gross domestic product (GDP) is expected to shrink in the current fiscal year through March 2021 under either scenario, but it would be smaller than a 5 per cent contraction, one of the sources said.

TOKYO (REUTERS) - Japan's government expects the economy will contract this year as activity slowly recovers from the coronavirus crisis, with a return to growth seen next year, four government sources told Reuters.

The Nikkei business daily reported earlier on Wednesday that the government will forecast GDP to contract by around 4.5 per cent for fiscal 2020, followed by a 3.5 per cent expansion for fiscal 2021.

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