Il Japan will grow more than expected. The Tokyo government has revised upwards its GDP estimates up to the end of March 2014, bringing them to + 2,5 % from the previous +1,7%. In the year that will end at the end of March 2013, however, the GDP should grow by 1%, a clear improvement compared to the +0,3% of the previous year.
The Japanese economy will be supported by the improvement in domestic demand which should arrive after the massive recovery plan envisaged by the new executive of Shinzo Abe. Even the recent decisions of the Bank of Japan towards a more accommodating monetary policy, with an inflation target of 2%, should prove positive for the country's economic situation.
The Government also underlined that “the excessive increase in the yen is correcting itself”, which will have beneficial effects on companies doing business abroad. The Japanese Executive Office has also forecast a 0,5% increase in the consumer prices in 2013/2014, against a decrease of 0,1% both in the financial year at the end of March 2013 and in the one at the end of March 2012. The rate of unemployment should instead drop to 3,9% in 2013/2014, from 4,2% in 2012/2013, while the industrial production it should go from -2,9 to +3,4%.
