30 October 2001, 08:12 Japan economy may contract in FY 2002: Takenaka
TOKYO, Oct. 30 (Kyodo) - Economic and fiscal policy minister
Heizo Takenaka said Tuesday it is possible that the Japanese
economy will contract in the next fiscal year beginning April 1,
2002.
"The (minus) figure may be possible," Takenaka told a news
conference in reference to the government's fiscal 2002 economic
forecast now being worked out.
If minus growth is confirmed, it would be the first time in the
postwar period that Japan's economy will have contracted for two
consecutive years.
It would also be the first time for the government to project
negative growth in its official economic forecast, which is to be
released in December together with the next year's budget plan.
For the current fiscal year, the government is expected to
revise downward its economic forecast shortly, from the originally
projected 1.7% growth to negative growth of around 1%, government
officials said.
Takenaka attributed his gloomy outlook to the fact that the
slump in the U.S. information-technology sector is severer than
expected and that the aftershocks of the recent terror attacks in
the United States are rippling through the Japanese economy.
"Suppose the U.S. economic recovery were to be pushed back to
the second half of 2002, about a year later than expected, (the
negative growth in Japan) may be possible," he said.
The Bank of Japan also said in its latest economic outlook
released Monday that the nation's economy may contract in fiscal
2002, with its growth projection ranging from minus 1.1% to plus
0.1%.
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