Cabinet Office Raises GDP Projections

August 6, 2007
By Ken Worsley

On Monday, the Cabinet Office announced that it was revising its GDP forecast for the current fiscal year upward from 2.0% to 2.1% growth. The Cabinet Office also said that it does not expect to see any inflation take hold in the economy during that time.

Exports and capital spending are expected to drive the GDP growth, with the Cabinet Office projecting a 3.8% increase in capital spending. The Bank of Japan projected capital spending increases at 7.7% in its most recent Tankan survey, and the Development Bank of Japan recently published a prediction of an 11% increase in a report last week.

Does this have any effect on predictions for the August Bank of Japan policy board meeting?