Agencies<\/p>\n
TOKYO<\/p>\n
Japan\u2019s government revised up its economic forecast for the \u200dfiscal year to next March and projected that growth would accelerate in the following year, on the view that its massive stimulus package will boost consumption and capital expenditure.<\/p>\n
The projections are the first to be compiled under Prime Minister Sanae Takaichi\u2019s administration, \u200cwhich has \u200cannounced big spending plans aimed at cushioning the blow to households from rising living costs while \u200cpromoting investment in growth areas.<\/p>\n
Under the latest projections approved by the cabinet on Wednesday, the government expects Japan\u2019s economy to expand 1.1 percent in the current fiscal year, up from 0.7 percent growth estimated in August due to the smaller-than-expected hit from US tariffs.<\/p>\n
Growth is expected to accelerate to 1.3 percent in fiscal 2026 as robust consumption and \u200ccapital expenditure \u200doffset soft overseas demand, according to the projections.<\/p>\n
The government \u200dsaid it expects consumption to rise 1.3 percent next fiscal year, \u200cthe same pace projected for fiscal 2025, as tax breaks and moderating inflation underpin household spending.<\/p>\n
Capital expenditure will likely increase 2.8 percent in fiscal 2026, faster than an estimated 1.9 percent rise for the current fiscal year, due in part to the effect of subsidies and tax breaks aimed at promoting investment in crisis management \u200dand growth areas.<\/p>\n
The government will use the estimates when it drafts the next fiscal year\u2019s state budget, which will \u200dbe finalised on Friday.<\/p>\n
The administration compiled a 21.3 trillion yen ($136.7 billion) stimulus package in November that included payouts to families with children, subsidies to cut utility bills, and fiscal spending to promote investment in areas such as infrastructure, artificial intelligence and semiconductor chips.<\/p>\n
The next fiscal year\u2019s budget is likely to include record total spending in line with the administration\u2019s expansionary fiscal approach, which has heightened market concerns over debt over-supply and pushed up governmentbond yields.<\/p>\n","protected":false},"excerpt":{"rendered":"Agencies TOKYO Japan\u2019s government revised up its economic forecast for the \u200dfiscal year to next March and projected…\n","protected":false},"author":2,"featured_media":2215,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[174],"tags":[2487,191,189,2488,2491,1601,188,410,190,2490,2489,2492,89,2413,222],"class_list":{"0":"post-2214","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-economic","9":"tag-economy","10":"tag-economy-of-japan","11":"tag-expected","12":"tag-fiscal","13":"tag-growth","14":"tag-japans-economy","15":"tag-japans","16":"tag-japanese-economy","17":"tag-next","18":"tag-rise","19":"tag-stimulus","20":"tag-to","21":"tag-with","22":"tag-year"},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/posts\/2214","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/comments?post=2214"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/posts\/2214\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/media\/2215"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/media?parent=2214"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/categories?post=2214"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/tags?post=2214"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}