ID :
30950
Tue, 11/18/2008 - 19:46
Auther :
Shortlink :
https://oananews.org//node/30950
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Japan economy may contract in FY 2008, 2009: Yosano
TOKYO, Nov. 18 Kyodo - Economic and Fiscal Policy Minister Kaoru Yosano indicated Tuesday the Japanese economy may contract in fiscal 2009 as well as in the current fiscal year through next March.
Yosano told reporters he is ''not confident at all at this moment'' that the
nation's economy will post growth in the next fiscal year starting April 2009.
The minister has already suggested the economy may shrink in the current fiscal
year.
Asked why he believes the economy will likely mark negative growth in both
fiscal 2008 and 2009, Yosano said, ''Looking at conditions at home and abroad,
it is difficult to find factors that would contribute to turning (the nation's
gross domestic product) into positive territory.''
The government draws up its economic growth forecast for the next fiscal year
when compiling the year's general account budget.
The growth projection, which serves as a policy guideline, is usually formally
adopted by the Cabinet in January following approval at a Cabinet meeting in
December.
If the government formally estimates negative growth for fiscal 2009, it will
be the first time it has forecast a contraction for a fiscal year. The
government had forecast the economy would remain flat in fiscal 2002 from the
previous year.
Many private-sector economists also project that the Japanese economy will
contract in both the current fiscal year and fiscal 2009.
Such a pessimistic economic outlook would likely force the government to
tighten fiscal spending and thus might affect the budget compilation process,
observers say.
''The economic forecast will become a basis for the budget compilation and we
have to face up to the reality,'' Yosano said.
Government data showed Monday the economy shrank an annualized 0.4 percent in
the July-September period in real terms from the previous quarter for the
second straight quarterly fall due to slower capital investment and weak
overseas demand.
Following the release of the GDP data, Yosano told a news conference Monday
that Japan's economy is in recession.
==Kyodo
Yosano told reporters he is ''not confident at all at this moment'' that the
nation's economy will post growth in the next fiscal year starting April 2009.
The minister has already suggested the economy may shrink in the current fiscal
year.
Asked why he believes the economy will likely mark negative growth in both
fiscal 2008 and 2009, Yosano said, ''Looking at conditions at home and abroad,
it is difficult to find factors that would contribute to turning (the nation's
gross domestic product) into positive territory.''
The government draws up its economic growth forecast for the next fiscal year
when compiling the year's general account budget.
The growth projection, which serves as a policy guideline, is usually formally
adopted by the Cabinet in January following approval at a Cabinet meeting in
December.
If the government formally estimates negative growth for fiscal 2009, it will
be the first time it has forecast a contraction for a fiscal year. The
government had forecast the economy would remain flat in fiscal 2002 from the
previous year.
Many private-sector economists also project that the Japanese economy will
contract in both the current fiscal year and fiscal 2009.
Such a pessimistic economic outlook would likely force the government to
tighten fiscal spending and thus might affect the budget compilation process,
observers say.
''The economic forecast will become a basis for the budget compilation and we
have to face up to the reality,'' Yosano said.
Government data showed Monday the economy shrank an annualized 0.4 percent in
the July-September period in real terms from the previous quarter for the
second straight quarterly fall due to slower capital investment and weak
overseas demand.
Following the release of the GDP data, Yosano told a news conference Monday
that Japan's economy is in recession.
==Kyodo
