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Japan’s government raised the FY2021 GDP estimate +4.0% from the previous forecast of +3.4% in July amid stimulus optimism, the latest estimate by the Cabinet Office showed on Friday.

Key takeaways (via Reuters)

“The forecast 4.0% growth for next fiscal year would be the fastest annual expansion on record, if realized, since comparable data became available in 1995.”

“Policymakers need to keep a close watch “on downside risks to the economy in Japan and overseas from the pandemic and impacts from moves in financial capital markets.”

“For the current fiscal year that ends in March 2021, the government cut its gross domestic product forecast to a 5.2% contraction, which would be the biggest annual slump on record.”

“Overall consumer prices are forecast to fall 0.6% for this fiscal year, from a 0.3% decline expected previously.“

“In fiscal 2021, overall prices will grow 0.4%, the government said, revised down slightly from the previous forecast of a 0.5% increase.”

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