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Japan forecasts real GDP growth of 2.5% in year from April

Published on Jan 28, 2013 8:22 AM

TOKYO (REUTERS) - Japan's economy will likely grow 2.5 per cent in the fiscal year starting in April, the government said today, as Prime Minister Shinzo Abe's ambitious fiscal and monetary policies boost domestic demand and a rebounding overseas economy helps exports.

The Cabinet Office's economic forecast, issued annually and revised every summer, will serve as a basis for the compilation of the government's budget, a draft of which is likely to be approved by the cabinet this week.

The government's projection for real gross domestic product is roughly in line with the Bank of Japan's estimate issued last week, but it is stronger than the median estimate for 1.8 per cent growth in a Reuters poll.

The new forecast is also stronger than the previous projection of 1.7 per cent growth made last summer.

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