Vice MOF chief defends optimistic growth estimate by gov't+

TOKYO, Jan. 29 Kyodo - Vice Finance Minister Kazuyuki Sugimoto on Thursday defended the government's estimate of zero percent real economic growth for Japan for fiscal 2009 starting in April, following criticism by economists that it is overly optimistic.

After the International Monetary Fund unveiled a fresh outlook Wednesday saying
that Japan's economy will shrink 2.6 percent in 2009, Sugimoto said at a news
conference that the government forecast made in December is ''not a simple
outlook'' but represents ''a feasible economic shape'' under the planned
economic management policy.
''The Japanese economy will face severe conditions for the time being amid the
global economic downturn but is expected to recover in the latter half of
fiscal 2009, as the government will implement a series of stimulus packages and
terms of trade will improve'' with declines in commodity prices, he said.
The government's view compares with the Bank of Japan's estimate that the
country's economy will contract 2.0 percent in real terms in fiscal 2009 ending
in March next year.
Sugimoto has said there is no inconsistency between estimates made by the
government and the BOJ, citing differences in their nature. He has said that
the central bank's projection does not reflect the government's planned
economic and fiscal policies.
==Kyodo
2009-01-29 22:02:05