TOKYO Reuters - The Japanese government is considering raising its economic growth forecast for fiscal 2022 to take into account the effects of its record $490 billion stimulus package, public broadcaster NHK reported on Monday.
In a mid-year review in July, the government projected real gross domestic product GDP growth of about 2.2% for the fiscal year starting in April 2022. The spending package aimed at helping businesses and households weather the pain of the COVID -- 19 epidemic, it now estimates a tailwind of 5.6% for real GDP from this fiscal year to next, according to NHK.
Japan has lags other economies in pulling out of the Pandemic-induced slump, forcing policymakers to maintain massive fiscal and monetary support even as other advanced nations dial back crisis-mode policies.
The world's third-largest economy shrank more than expected in the third quarter due to a hit to consumption and exports due to the pandemic curbs and global supply disruptions.
Japan's three massive spending packages to counter the epidemic have left it with outstanding long-term debt about double the size of its $5 trillion economy.