Japanese Government Targets 4% GDP Growth Rate for Next Year

[Image source=Yonhap News]

[Asia Economy Reporter Yujin Cho] The Japanese government has set its real gross domestic product (GDP) growth target for next year at 4%.

On the 18th, the Japanese government projected at the Cabinet meeting that next year's real GDP, excluding the effects of price fluctuations, will grow by 4.0% compared to the previous year. This is 0.6 percentage points higher than the forecast made in July, reflecting the effects of recently finalized additional economic measures.

The Yoshihide Suga Cabinet, launched in September, decided on an economic package totaling 73.6 trillion yen (approximately 782 trillion won) on the 8th, combining 40 trillion yen in fiscal spending and private expenditures, citing COVID-19 response and strengthening the growth foundation as reasons.

According to the Yomiuri Shimbun, if next year's real GDP growth rate meets the forecast, it will mark the highest growth rate since statistics began in 1995.

The Japanese government expects that with the containment of COVID-19 spread next year, economic activities will become more active, and personal consumption will increase by 3.9%, supported by travel promotion policies. In particular, exports are projected to rise by 11.4% as the global economy recovers.

The government anticipates that the nominal GDP for 2021, reflecting market prices, will recover to 559.5 trillion yen (approximately 5950 trillion won), similar to last year's level of 559.7 trillion yen.

Meanwhile, the Japanese government estimates that due to the impact of COVID-19, this year will record a real GDP growth rate of -5.2%, experiencing the worst contraction since 1995.

This content was produced with the assistance of AI translation services.