TOKYO: The Japanese government is considering raising its economic growth forecast for fiscal year 2022 to take into account the effects of its record $490 billion stimulus package, public broadcaster NHK reported on Monday.
In the mid-year review in July, the government had projected a growth of around 2.2% in real gross domestic product (GDP) for the fiscal year beginning April 2022. The accompanying expense package was intended to help businesses and families cope with the pain. , NHK said that due to the COVID-19 pandemic, it now anticipates a reduction of about 5.6% for real GDP from this fiscal year to the next.
Japan has lagged other economies in exiting the pandemic-induced recession, forcing policymakers to maintain massive fiscal and monetary support while other advanced nations dial back crisis-mode policies. Huh. Huh. Huh.
The world’s third-largest economy shrank more than expected in the third quarter, as the pandemic and global supply disruptions hit consumption and exports.
Japan’s three massive spending packages to tackle the pandemic have left it with outstanding long-term debt that is almost twice the size of its $5 trillion economy.
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