Japan's economic growth outlook revised upward
The Japanese government is to revise upward its forecast of economic growth in real terms to around 2.6 percent for this fiscal year.
Sources close to the government attribute the revision to brisk exports to Asia of automobiles and other goods, as well as strong domestic sales of eco-friendly cars and home appliances such as TV sets, helped by economic stimulus measures.
The previous growth outlook in December was 1.4 percent, as the government thought the economy was not well out of danger of falling into a double-dip recession. But the recovery outpaced what was predicted.
A full annual growth rate of above 2 percent would be the first in 4 years.
However, the government does not rule out a possible slump in consumer spending in the latter half of the year, as tax incentives and rebates for eco-friendly products are scheduled to end.
The government will soon announce the revised growth rate along with a strategy that includes targets for restoring Japan's fiscal health.