Japan’s cabinet office on Friday lowered its growth forecast for the current fiscal year to an expansion of 0.7 percent in inflation-adjusted real terms, down from a previous projection of 0.9 percent in July.
The downward revision reflected delays in the recovery of automobile exports, impacted by certification-related issues with certain manufacturers.
The new forecast, released by the government at a meeting of the Council on Economic and Fiscal Policy, was also slightly below last year’s growth rate of 0.8 percent.
The cabinet forecast that consumer prices could remain high, with consumer price index expected to increase 2.6 percent this year following a 3-percent rise last year.
Looking ahead, the cabinet expected the economy to grow 1.2 percent next fiscal year, supported by a recovery in private consumption and steady corporate investment
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