Close

Request a call back

The government of Japan predicted that the country's economy will grow faster in 2019 financial year than predicted earlier forecasts

At the same time, it is expected that exports, domestic private consumption and capital expenditures will offset the impact of the planned increase in corporate income tax. The Cabinet's forecasts presented in the Council on Economic and Budgetary Policy, the highest economic group of the government, showed that the economy is likely to grow by 1.5% in real terms in the financial year, which will begin in April 2019. It is expected that the growth will be up to 2.8% in nominal terms. Market economists believe that the economy will grow by only 0.8% in real terms and 1.8% in nominal terms, which will affect the projected increase in sales tax in October 2019. High estimates of government growth underscore Japanese Prime Minister Shinzo Abe's desire to secure higher tax revenues, as he attaches greater importance to growth, rather than saving.