Japan forecasts GDP growth of 1.4 percent for fiscal 2014

The government forecast on Saturday that Japan’s real gross domestic product will grow by 1.4 percent for the fiscal year starting March 2014, slowing from an expected 2.6 percent growth for the current year as a planned sales tax increase is seen dampening consumption. The national sales tax is set to rise to 8 percent in April and could rise to 10 percent in 2015 if the government of Prime Minister Shinzo Abe goes ahead with its fiscal consolidation plan. The government also forecast that consumer prices will rise by about 1.2 percent in the 2014 fiscal year, without considering an impact from the sales tax hike.


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