Japan Considering to Raise GDP Forecast for Fiscal Year 2022

Japan is considering to raise its forecast for fiscal 2022 real gross domestic product (GDP) growth to 3.0% or more after accounting for impact of record $317 billion extra budget, the Yomiuri newspaper reported.

The forecast is an update from 2.22% real GDP growth for the fiscal year starting April 2022 released at mid-year review in July.

According to Reuter’s report, Saisuke Sakai, senior economist at Mizuho Research and Technologies said, “The projected growth figure is not that overly bullish, considering the continued growth thanks to eased restrictions and a high vaccination rate,”.

“Yet it does not appear to weave in the risks around the Omicron (variant) and another wave of COVID-19 outbreak next year much.”

Yomiuri said in the report the cabinet was yet set to approve the new forecast on Thursday. The development came after parliament on Monday approved $316.73 billion extra budget for the current fiscal year.