Japan’s economy is expected to expand 1.7 percent in the fiscal year beginning in April 2013 after an anticipated increase of 2.2 percent in the current business year, the government said in its latest growth forecasts released on Friday.
The forecasts matched the Bank of Japan’s projection issued last month and is roughly in line with the median estimate of analysts polled by Reuters in July.
The Cabinet Office, which made the estimate, also said Japan will likely achieve nominal gross domestic product (GDP) growth of 1.9 percent in fiscal 2013, exceeding real GDP growth as it steadily emerges from deflation.
The government said it expects overall consumer prices to rise 0.1 percent in the current fiscal year, the first increase in four years, and increase 0.5 percent the following year.
The government’s real GDP estimate for the current fiscal year, ending in March 2013, was unchanged from its previous estimate made late last year.