BOJ to Revise Japan’s Economic Projections Lower For This Year

According to a recent report on the Nikkei, the Bank of Japan is likely to revise economic forecasts for the world’s third largest economy lower in the wake of the ongoing coronavirus crisis. The central bank’s latest economic projections are scheduled to release next week, and could see the BOJ lowering the current fiscal’s projections of a 5.5% contraction in the Japanese economy.

The deeper contraction expected in the current fiscal year is likely to be driven by weak domestic consumption. The state of emergency declared by the government in an attempt to curb the spread of the pandemic is expected to keep consumers cautious about spending, and hurt the economy, despite the recently announced fresh stimulus measures.

On an upbeat note, however, the BOJ could revise economic projections for the next fiscal year higher. In the last forecast published in October, the central bank had forecast that the economy could grow by 3.6% in the next fiscal year that starts in April 2021.

The economy is likely to return to growth, supported by an improvement in exports even as stimulus measures improve the domestic situation as well. According to the report, BOJ officials have expressed apprehension about rolling out more stimulus as it could offset the government’s restrictions to contain the latest wave of the pandemic.

 

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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