Gov't to forecast Japan's economy to grow real 0.5% in FY 2010+

TOKYO, June 29 Kyodo -
The government plans to project that Japan's real economic growth will be
around 0.5 percent for fiscal 2010, a turnaround from a contraction of 3.3
percent projected for fiscal 2009 to next March 31, government sources said
Monday.
Government economists are expecting the first expansion of Japan's gross
domestic product, adjusted for changes in prices, in three years as the global
economic slowdown has bottomed out, they said.
The growth projection will be released Wednesday as a base for mapping out a
ceiling on budget requests for fiscal 2010.
Government economists are also discussing projecting that Japan's economy will
shrink by about 0.1 percent in nominal terms for fiscal 2010 for the third
consecutive year of contractions, the sources said.
Given the overcapacity of production in the corporate sector and the tough
employment situation, the economists expect the growth of nominal GDP, which
measures the value of goods and services at current prices, to remain below
that of real GDP in fiscal 2010.
==Kyodo