MNI: Japan Govt To Raise FY2020 GDP to 1.4% from 1.2% - Press

     TOKYO (MNI) - The government will raise its economic growth forecast in

fiscal 2020 to 1.4% from 1.2% estimated in July, as recent economic stimulus

measures will likely be a boost, local newspapers reported on Saturday.

     The Cabinet led by Prime Minister Shinzo Abe will approve the forecast in

the coming days. The government's GDP forecast is far above private economists'

forecast of a 0.39% rise in fiscal 2020.

     The Bank of Japan's board median forecast for real GDP in fiscal 2020 is

+0.7%, the latest Outlook Report said in October and the board will review that

forecast in January.

     The government is also expected to approve a 0.9% growth forecast in the

current fiscal year ending March 31, 2020.

     A stimulus package approved by the government recently included

disaster-related infrastructure spending and support for productivity

improvements at smaller firms.

     Given increased capital spending, public works and other activity, domestic

demand will contribute 1.5 percentage points to fiscal 2020 growth in the

upcoming forecast, compared with 1 point in the July estimate.

     But global demand for Japanese goods is likely to remain weak in fiscal

2020. Net export demand, or exports minus imports, is expected to depress growth

by 0.1 pp in the new forecast, compared with a 0.2 pp boost in the previous

estimate.

--MNI Tokyo Bureau; tel: +81 90-2175-0040; email: hiroshi.inoue@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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