Japan has boosted its GDP forecasts, as expected

Cabinet Office officials.

The growth projection for fiscal 2022 was raised to 3.2% from a forecast 2.2% real GDP growth seen in the mid-year review in July

  • if 3.2% is hit it’d be the fastest growth since fiscal 2010 (the economy bounced back from the GFC with +3.3%)
  • stimulus spending is expected to push up GDP by 1.5% this fiscal year and 3.6% next fiscal year

The picture for the current FY is not so rosy:

  • Japan’s real GDP estimate 2.6% in the current fiscal year ending in March from 3.7% previously
  • prolonged COVID-19 pandemic and supply constraints in chip production weigh

The revised forecasts will provide the basis for the fiscal 2022 budget to be compiled on Friday.

For the session, USD/JPY is staying in a small range only:

usdyen chart fo rDecember 23

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