Almost all central bank presidents in major countries said 2019 growth forecast of economy to be slowing down, it seems Japanese economy growth rate gets dull in 2019.
In the end of last year’s forecast, which was served as the basis for drawing up budget proposals in 2019. The outlook is still optimistic compared with the less-than-1% growth forecast by the Bank of Japan and private-sector economists.
Main reason why above mentioned is growing uncertainties from current world economy situations such as the U.S.-China trade war, volatile oil price movement, and a potential slowdown in the world economy seem to be among the considerations.
Also Japan is going to raise its consumption tax rate to 10% from the current 8% next October. According to the Cabinet Office estimated in last September, a 1 percentage point increase in the sales tax pushes down Japan’s real GDP by 0.3%.
To allay the impact, the government is planning various stimulus measures including gift certificates, reward points, and assistance on purchases of homes and cars.
However the growth estimate for the current fiscal year through March, also to be revised soon, will likely be a 0.9% increase, down from the 1.5% rise announced in last July.