BOJ to consider 2021 growth forecast slash

Nikkei reported on Monday the Bank of Japan will consider slashing its economic growth forecast for this fiscal year ending in March. This, according to Nikkei, is due to consumption being negatively impacted by the state of emergency measures implemented to mitigate the spread of the coronavirus in the country.

However, the BOJ may appraise its growth forecast for the next fiscal year in its quarterly review of its projections that are bound to be released next week, the newspaper said.

Looking into the central bank’s current estimates released in October 2020, it projects a 3.6% economic expansion next fiscal year preceded by this fiscal year’s 5.5% contraction projection.

Despite spending taking some downturn, the BOJ sees boosted export activities and growth support from the government’s stimulus package.

Japan imposed a limited state of emergency in Tokyo along with three nearby prefectures to halt the spread of the coronavirus. According to Prime Minister Yoshihide Suga, the state of emergency measures will expand beyond Tokyo as COVID-19 infections continue to surge, enough to stir concerns for a double-dip recession in the world’s third-biggest economy.