15 September 2004, 11:52  Japan Q3 GDP seen growing 2.8% annualised

Japan's economy will probably grow at an annualised 2.8 percent in the July-September quarter from the previous quarter, a survey of 38 private sector economists by the Economic Planning Association showed on Wednesday. The association, an economic analysis body with close links to the government, also said economists expected Japan's gross domestic product (GDP) to grow 3.6 percent in real (price adjusted) terms for the current fiscal year to next March. That was down from a forecast of 3.8 percent growth in the August survey and the first time forecasts for the fiscal year have been revised down since the monthly survey began in May. The survey came after the Japanese government last Friday revised down second-quarter economic growth to 1.3 percent on an annualised basis from an initial estimate of 1.7 percent, defying widespread expectations for an upward revision. A surprise downward revision for April-June GDP, coupled with a series of soft economic data for July released in recent weeks, have prompted concerns about the strength of Japan's recovery in coming quarters. The government is forecasting growth of 3.5 percent for the fiscal year to March 2005. For the fiscal year to March 2006, the economists saw growth of 1.8 percent, down from a forecast of 1.9 percent growth in the August survey, the association said. The survey does not give a breakdown of individual forecasts.///

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