MNI BRIEF: Japan Govt Sees FY2023 GDP At 1.5% Vs. FY22 1.7%

Japan's government lowered its real GDP forecast for fiscal 2023 to growth of 1.5% from the fiscal 2022 forecast of 1.7% due to the slowing global economy and high energy and food prices, the Cabinet Office said on Thursday.

The government’s forecast is higher than the 1% growth predicted by private economists but lower than a 1.9% growth predicted by the Bank of Japan board’s median forecast, although the BOJ will review the growth forecast in January.

The government sees growth of 1.7% for fiscal 2022, revised down from a 2.5% growth in fiscal 2021.

Private consumption and capital investment are expected to rise 2.2% and 5.0% y/y in fiscal 2022, respectively, revised from 2.8% and 4.3% this fiscal year.

The unemployment rate in fiscal 2023 is expected to be around 2.4%, down from this fiscal year's forecast of around 2.5%.

The overall consumer price index for fiscal 2023 is expected to rise1.7% y/y, down from this fiscal year forecast of 3% caused by the high import prices.

The government expects the world economy to slow in fiscal 2023 but it expects Japan’s economy to be supported by the government’s economic stimulus package.