Bank of Japan Announces 2020 GDP Growth Rate of -5.6%... Forecasts 3.9% for 2021

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] The Bank of Japan has revised down Japan's real Gross Domestic Product (GDP) growth rate for 2020 to -5.6%, which is 0.1 percentage points lower than the forecast made in October last year.

This was revealed in the "Outlook for Economic Activity and Prices" report released by the Bank of Japan on the 21st.

The growth rate for this year is expected to be 3.9%, which is 0.3% higher than the forecast made in October last year.

At the Monetary Policy Meeting and Financial Policy Decision Meeting held on the same day, the Bank of Japan decided to maintain its large-scale monetary easing policy in response to the novel coronavirus disease (COVID-19).

Additionally, the Bank will continue the monetary easing policy by keeping the short-term interest rate at -0.1% as it is now, and guiding the 10-year government bond yield, a long-term interest rate indicator, to around 0%.

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