TOKYO (AFX-ASIA) - State Minister for Economic and Fiscal Policy Heizo Takenaka said the economy may grow at between zero and 1.0 pct a year on average over the next two to three years if the overseas slowdown is not prolonged.
During this period the government will promote economic structural reform, he said, adding that an estimated 100,000-200,000 jobs may be lost as a result of plans to boost banks' bad-loan write-offs over two years.
However, the impact of the increased unemployment on consumer spending will be limited due to government counter-measures. The comments were made in a statement prepared for a press briefing to discuss the release today of the government's blueprint for economic, fiscal and structural reform.
Takenaka said 5.3 mln new jobs would be created in the service sector as a result of the restructuring, adding that if the government's economic reforms progress enough, Japan can attain its growth potential of 2.5-3.0 pct per year.